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Banks Start a War Over the Volcker Rule

Posted by: RateAPY Bank Rates News
February 2nd, 2010

Banking lobbyists have descended on Capitol Hill to fight against the Volcker rule. President Obama has vowed to take on the fight and has requested that Congress do what is necessary to reform banks so “never again will the American taxpayer be held hostage by a bank that is too big to fail.”

What Is the Volcker Rule?

In President Obama’s words, the Volcker rule means that “banks will no longer be allowed to own, invest, or sponsor hedge funds, private equity funds, or proprietary trading operations for their own profit, unrelated to serving their customers.”

Congress and the current presidential administration have had about eighteen months to figure out the root cause of the financial collapse. They are blaming the loss of over seven million jobs and the deepest recession in several generations on risky banking bets. The message from Capitol Hill is, “Never again.”

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