Business as Usual
99.9 Percent of Banks Would Not Be Affected by Volcker Rule
Dec. 13, 2012 - The Volcker Rule, among the most controversial aspects of the Dodd-Frank Wall Street Reform and Consumer Protection Act, will prohibit federally insured banks from engaging in proprietary trading, which involves speculation through short-term trades in stocks, derivatives and other securities.The financial crash, borne of reckless banking practices, cost the economy about $12 trillion. But Wall Street lobbyists have sought to water down the rule based on relatively miniscule costs that it would impose on them. A new Public Citizen report shows that most bankers have little to fear. In reality, the Volcker Rule will mean no change, no closure of business divisions, no costs from foregone financial activity, for more than 99.9 percent of banks.