Paul Volcker, former Federal Reserve chairman, has spoken
exclusively to IFLR about his eponymous rule. Mr Volcker said
Volcker Rule, a part of the
2010 Dodd-Frank Act, has carried out his basic intent:
banning federally-backed banks from speculative activity. But
believes that more clarity is needed over the regulation.
"There are still questions about the Volcker Rule's
international application and over clearing through New York
City, as well as some technical questions and about defining
hedging," said Mr Volcker.
That the Volcker Rule would raise international questions is
no surprise. The Dodd-Frank Act is domestic legislation and the
Volcker Rule has a domestic aim: banning federally-backed banks
from proprietary trading. "Mr Volcker is a big
fan of Glass-Steagall, the 1930s law that separated banking and
securities activities in the US," said David R. Sahr, partner
Former Federal Reserve chairmanDespite being domestic
US legislation, however,...