Wednesday, March 17, 2010

Volcker Rule to Disappear in Reform Bill

CNBC's Steve Liesman reported the Volcker Rule would not last as the Senate considers financial reform. What is it? BusinessWeek states:

The rule is named after former Federal Reserve Chairman Paul Volcker, now an Obama adviser who has said banks supported by federal deposit insurance shouldn’t be allowed to engage in proprietary trading or own hedge funds or private-equity firms.
If that falls, Chris Dodd's bill is a uniform free pass for private equity underwriters (PEU's). The Obama White House continues catering to the big money boys.