Paul Volcker, the veteran US central banker, is confident that the ‘Volcker Rule’ forbidding commercial banks from proprietary trading will be passed into law in the US.
A version of his rule is contained in Section 619, an
amendment to the Restoring American Financial Stability Bill
going through the Senate at the moment.
Speaking during a discussion at the London School of
Economics with the school’s chairman Howard
Davies, Volcker told listeners: "It’s being
debated [at the moment]. I think the prospects are pretty
"There are a lot of things in the bill that I'm not
enamoured by," he added, "[but] there are some basic elements
which deserve support. This Goldman business has removed some
Volcker, chairman of President Obama’s
Economic Advisory Recovery Board, was referring to fraud
charges brought against Goldman Sachs by the Securities and
Exchange Commission for failing to disclose to investors that
the structuring of a collateralised debt obligation it sold
them had been influenced by a hedge fund that was going short
of the deal.
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