The Phaserl


Free Market Will Trump Volcker Rule In End

from Wealth Cycles:

The ink was still wet on U.S. President Barack Obama’s signature signing the Dodd-Frank Wall Street Reform and Consumer Protection Act into law in July 2010 when the wrangling began over how and how much to clamp down on trading by federally insured banks. Even though the financial reform act was passed, the devil is in the details of how regulators will actually implement it.

The Volcker Rule, named for the former Federal Reserve chairman, was inserted into the Dodd-Frank Act to prohibit federally insured banks from gambling with depositor funds, incurring losses that would have to be covered by the Federal Deposit Insurance Corporation. But Congress, deluged with protests from Wall Street, didn’t want to cut off banks’ ability to trade entirely. Some trading by banks, such as buying up certain kinds of securities to resell to bank customers or investing bank-owned funds to help hedge against future losses, is considered legitimate and desirable to keep the financial markets running smoothly.

Read More @

Help us spread the ANTIDOTE to corporate propaganda.

Please follow SGT Report on Twitter & help share the message.

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>