An excerpt from a new book by Richard Wolffe has arrived to clear up any confusion about who killed the Volcker Rule.
An excerpt from Revival: The Struggle for Survival Inside the Obama White House, courtesy of the Huffington Post:
[Summers’] doubts sat there in the West Wing, blocking the Volcker rule for months. Obama had signaled that he wanted the rule to move forward back in October. The banks were on safe ground again, but could still benefit from subsidized lending by the federal government. That seemed wrong when they could use the money to trade for themselves rather than lend it to customers in the real economy… Biden was an old friend of Volcker’s and started to press for the rule to take force.
But as the weeks dragged on, Summers rehashed his same old questions and concerns. At one fall meeting with his economics team in the Oval Office, Obama wanted to know why nothing had moved yet. Summers dug in once again, while Geithner – whose media coverage cast him as a supposed ally of Wall Street – wanted to push ahead. Obama noted dryly, “I think I can argue everyone’s position now.”
Summers must be proud to finally get some recognition for this. Remember his face when the Volcker rule was first announced?