Obama lays out Volcker rule specifics for Congress

[ProSense]

Obama lays out Volcker rule specifics for Congress

By Karey Wutkowski and Rachelle Younglai

WASHINGTON (Reuters) – U.S. banks would be banned from proprietary trading and other large financial firms would face quantitative limits on such activity, according to draft language on the so-called "Volcker rule" from the Obama administration.

The language maintains the toughest components of the proposal first floated in January, despite skepticism from lawmakers and the industry that such restrictions would do little to prevent another financial meltdown like the one that seized markets in 2008.

Banks would also be banned from investing in or sponsoring hedge funds and private equity funds, according to a draft version of the legislative language obtained by Reuters. A final version of the language is expected to be sent to lawmakers later on Wednesday.

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"These proposals are part of a comprehensive package of reforms to create a safer, more resilient financial system," the draft legislative language said.

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[Skink]

1. We're skeptics too....

as to why this took till now.

[NJmaverick]

2. K & R

[On the Road]

3. Volcker is Highly Regarded by Republicans as Well as Democrats

It's really revolting that the "Volcker rules" have so little support in the other party, not to mention tepid support even among Democrats.

[Cha]

4. Okay..KR for more steps

forward.

[PurityOfEssence]

5. Great.

The first obligation of the financial industry is to make sure it exists and is stable. After that, they can maraud around for obscene profits, but safety needs to be ensured.

It'll be interesting to watch this develop.

[golfguru]

6. If Obama can achieve this to become law

to me it would be the most important thing he can do in his presidency.
The banks are out of control. They take huge risks using depositors money
and make huge profits. When they lose the gamble they ask for tax payer
funded bailouts.