Government (The Fed) support of corporate financial institutions... Christmas came early for Wall Street this year. The Federal Reserve on Thursday granted banks an extra year to comply with a key provision of the Volcker Rule, a move that gives financial lobbyists more time to kill the new regulation before it goes into effect. The Feds delay comes less than a week after Congress granted Wall Street a reprieve from another reform that had been mandated by the 2010 Dodd-Frank financial reform law. The measure, known as the swaps push-out rule had eliminated federal subsidies for trading in risky derivatives -- the complex contracts at the heart of the 2008 banking meltdown. Bank watchdogs say the Volcker Rule delay adds insult to injury. The delay is an embarrassment for President Barack Obama, who championed the Volcker Rule in 2010, as well as for Fed Governor Daniel Tarullo, a major proponent of tougher regulation at the central bank. It is a victory for the Feds top lawyer, Scott Alvarez, a holdover from the years when Alan Greenspan served as chairman. Alvarez suggested watering down the Volcker Rule at a conference for bank lawyers in November. huffingtonpost/2014/12/18/volcker-rule-federal-reserve_n_6351190.html
Posted on: Thu, 25 Dec 2014 21:20:45 +0000
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