The Argumentive Volcker Rule

I have commented on my finance blog in the past about the Volcker Rule, named for the former Federal Reserve Board chairman Paul Volcker, who had suggested it, as part of the Dodd-Frank Act provisions.

The Rule is being vehemently opposed by bankers in the U.S. and Europe because it will reduce essential liquidity without doing what it’s supposedly intended to do, making banks any safer. I have explained why in the past. Especially where it specifically exempts U.S. debt obligations from its provisions, a fact that foreigners have taken dim notice.

Another observation: Paul Volcker has always been an icon for having successfully fought inflation years ago. Why would he want his name to be hereafter associated with this ruling? Even Volcker has questions how the regulators are going about this subject. (See the Earl J. Weinreb NewsHole® comments.)