Yesterday it emerged that the Volcker Rule was dead, and that for whatever reason, Democratic Senator Chris Dodd was going to help kill it, fighting instead for something more watered down and “bi-partisan.”
Now we know why he’s so upset. He – like Tim Geithner and Larry Summer, it would seem — weren’t part of the club that created the new rules.
Mr. Dodd also appeared slightly annoyed that President Barack Obama threatened during his State of the Union speech last week to veto the legislation if administration officials weren’t satisfied with it. Mr. Dodd called it “somewhat interesting” that the White House would threaten a veto when Mr. Dodd’s bill was the only major piece of legislation in the Senate that had a chance of attracting Republican support.
Mr. Dodd also slammed the White House for not having answers to technical questions about the proposals, saying he was calling the administration and “not getting good answers.”
This sounds like a legitimate complaint — it’s actually stunning that nobody really knows what the rules would be, that nobody really knows how it will affect banks like Goldman and JPmorgan.
Still, the impression is that Dodd was left out in the cold, not part of the Volcker circle that dreamed this up (and not surprisingly, since he’s always had a reputation of being a friend to the financial industry), and thus unwilling to play ball.
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