Wednesday, June 30, 2010

Volcker Not a Happy Camper

The nutty Volcker Rule, which goes nowhere near the real problem of elite banks playing footsie with government, has turned into The Volcker Putty in the hands of the banking elite. Volcker is not happy about this. According to Bloomberg
Paul Volcker is disappointed with the final version of the rule that bears his name.

As first envisioned, the Volcker rule would have banned banks from running private-equity and hedge funds, an attempt to curb risk-taking that fueled the financial crisis. Last-minute congressional negotiations aimed at winning Republican support led to a compromise that allows banks to invest up to 3 percent of their capital in such funds.
But, really, Volcker is 82 years old, if he doesn't get the fact that elite bankers rule and shape policy, he is likely to never get it, and they will continue to use him as the towering pawn, just like they have throughout his career.

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