May 30, 2018
Updated Volcker Rule Should Make Compliance More Transparent
Statement of Bartlett Naylor, Financial Policy Advocate, Public Citizen’s Congress Watch Division
Note: Today, the Federal Reserve plans to release a proposed revision of the Volcker Rule, the regulatory implementation of the statute in the 2010 Wall Street Reform Act that restricts proprietary trading, or trading for the bank’s own benefit.
Congress approved the important Volcker Rule to refocus banks on the business of banking – loan-making to businesses and consumers. Banks should not be gambling with money made cheap and abundant by taxpayer-backed insurance; this practice fattens bank profits and bonuses in good times, and imperils the system when bets go bad. The change we need to see is improved enforcement of the Volcker Rule accompanied by greater transparency in compliance. Main Street Americans should never have to underwrite gambling.