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This updates a post on Insurance Claims and Issues Web Log of January 25, 2010 and a post here, also on January 25, 2010.
There is no more authoritative Update of the "Volcker Rule" than to hear the words of the man himself. The "Volcker Rule" was coined by President Obama when he announced his support for Mr. Paul Volcker's ideas to, among other things, separate proprietary trading in which the client is not affected by the outcome of the trading, from commercial banking.
Organizations which would potentially be affected include Goldman Sachs and JP Morgan Chase, both of which "have proprietary trading desks and private equity units." Chrystia Freeland and Francesco Guerrera, "'Volcker Rule' Gives Goldman Stark Choice" (Financial Times Online at FT.com, Friday, February 12, 2010). In an interview for the Financial Times piece, Mr. Voelcker is quoted as saying:
The implication for Goldman Sachs or any other institution is, do you want to be a bank? If you don't want to follow those rules, you want to go out and do a lot of proprietary stuff, fine, but don't do it with a banking license.... Don't expect the support you would get from being a bank within the club of insured deposits and access to the Federal Reserve and all the loving attention you get as a bank organization.... [However, you would not] escape from all oversight and regulation."
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