“VOLCKER RULE” APPROVED…FINALLY!

I have previously written about “The Volcker Rule”, perhaps the preeminent part of the Dodd-Frank Legislation which was designed to reduce the risks that banks took and, perhaps, greatly contributed to the Great Recession (4Q07-1Q09). Basically, it would prevent the banks taking risks with FDIC-Insured Deposits of their customers. Proprietary Trading and Hedge Fund investments would have to be done through Non-Bank Subsidiaries–and completely separate from Banking Activities.

Wall Street and the Financial lobby have been fighting the Rule tooth and nail, and their Lobby has been relentless in cozying up to Congress to de-fang it. But, JPMorgan’s “London Whale” trading fiasco ($6 Billion+ in Losses) merely showed that even our assumed biggest, safest and best-regulated banks cannot manage themselves. Today, all five of the regulatory agencies involved–Federal Reserve, the Federal Deposit Insurance Corporation, Securities and Exchange Commission, the Commodity Futures Trading Commission and the Comptroller of the Currency–approved the Volcker Rule.

The linked article, from the NY Times, goes into more detail on the passage of The Volcker Rule, http://dealbook.nytimes.com/2013/12/10/regulators-vote-to-approve-volcker-rule/?ref=international-home&pagewanted=print. Let’s hope that Congress doesn’t try to reduce the impact of the Volcker Rule in providing some protection for America–and its Depositors.

I assume that, with only three days left in the Congressional Calendar, they are too busy with “more important” matters than to approach Volcker. No, I don’t believe that they will call for a 47th Vote (actually, I’ve lost count) to repeal or defund the so-called Obamacare. The House is, however, holding hearings to look into the probability of Aliens living on other Earth-like planets.

I guess that, for Speaker John Boehner (R-OH), his agenda is “First Things, First”. Budget, Immigration, Farm Bill, etc…..eh? Honestly, perhaps the Republican House “Leadership;” is looking for a Planet with a bunch of old White Men on it.

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