Volcker and his critics
February 21, 2012
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There has been quite some press recently on the Volcker rule, in part related to the deadline for comments last week. The Financial Times carried a comment from Volcker himself where he rejected the claims from some capitals (JP, CA, EU among others) that the rule would sap liquidity from their sovereign bond markets.Today a chairwomen from the Institute of International Bankers responds.
A complete run on the arguments for and against the Volcker rule is given by Simon Johnson (former Chief Economist of the IMF) in this recent NY Times post, which also includes several relevant references. He notes that if anything, the bankers are getting away cheaply in the proposed new regime, which isn’t even finished yet.
Among those that have submitted comments are also the Occupy Wall Street subsidiary “Occupy SEC”, which have provided a well balanced and constructive comment paper of 190 pages! According to this report, it has been accomplished as a huge workshop, with some of the participants clearly being well informed about the intricacies of Wall Street. You can find their comment letter on their web site.