Support former Federal Reserve Bank Chairman Paul Volcker in banning insured bank from trading stocks and derivatives with their own proprietary money.
Why is this important?
Bank and securities regulators are required by the Dodd-Frank Act, written in response to the financial crisis of 2008, to approve a unified rule on the subject. The rule must go into effect by July, according to the statute.
At issue is a measure that would prohibit big insured banks’ from trading stocks and derivatives with their own money, known as proprietary trading. It also limits banks’ investments in hedge- and private-equity funds in an effort to reduce risks to the broader financial system.
