From the FINANCIAL TIMES:
Paul Volcker, the influential former Federal Reserve chairman, is casting a long shadow over two proposed regulator changes that have shot to the top of the banks’ “must-kill” list and could come to a vote in the US Senate this week.
He is pushing the “Volcker Rule”, designed to ban deposit-taking banks from “casino” activities such as proprietary trading. But he opposes a derivatives provision that would force deposit-taking banks to spin off their swaps operations…
Two bank lobbyists said a powerful combination of Mr Volcker, Mr Obama and the anti-bank fervour in the country meant they had almost given up hope of modifying the Volcker Rule, which would prohibit banks from trading for their own account and investing in hedge funds and private equity firms…
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