Hoenig Says Volcker May Spur Efforts to Split Biggest Banks
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The Volcker Rule ban on banks’ proprietary trading is a “useful” step that may spur efforts to split commercial lenders from broker-dealers, Federal Deposit Insurance Corp. Vice Chairman Thomas Hoenig said today.
“I don’t necessarily think it will stop the momentum, especially if it’s successful and helps mitigate some of the surprises we’ve had,” Hoenig told reporters after a speech in Dublin. “It may in fact make a very good case for carrying that forward in terms of some of the risks that are still in market-making that can be gamed very easily for speculative activity.”