Our Common Good

Though the Dodd-Frank Wall Street reform act was passed way back 2010, much of the law remains to be implemented. One reason for the lag between passage of laws and their implementation is that when federal agencies propose new regulations, they are required to first seek public comment.

 

Monday was the final day that federal regulators were accepting comments on the so-called Volcker Rule, a regulation, first proposed by former Federal Reserve Chairman Paul Volcker, which bans federally-supported banks from making financial bets with their own capital.

Over the past several months, banks and other financial institutions have come out against the rule, claiming it would make financial markets less liquid, and American banks less competitive.

Volcker came to the rule’s defense yesterday, submitting an eight-page letter to federal regulators.

I don’t like it, but there it is. … If they think it’s too complicated, they have no one to blame but themselves.

Former Fed chairman Paul Volcker, commenting to the New York Times on how the proprietary trading ban he originally proposed to rein in banks’ risk-taking — once a simple 3-page letter to the president — has ballooned into 298 pages of complex regulations after Wall Street firms lobbied for many exemptions.  (via officialssay)

Don’t you think they thought by complicating it, it would die? Well, it’s not dead but it sure will be heavy.

(via firthofforth)