Hank Paulson told Dealbook that the one issue he has with the financial reform bill is the Volcker Rule.
“Proprietary trading during the crisis that I dealt with wasn’t what created the problems at WaMu or Countrywide or Wachovia or Lehman Brothers or A.I.G.”
“We were dealing with another set of issues.”
So the Volcker Rule, which would bar banks from proprietary trading, and investing in hedge funds or private equity, would be an unnecessary addition to the bill.
The other problem he has is with the people enforcing financial regulation.
“A lot of this is about the people who have the responsibility for the regulation when there isn’t a crisis and the people who have the responsibility during a crisis.”
But let’s face it: the Volcker Rule is already a shadow of its former self, having been wittled down from a robust profit-buster to a rule that will be pushed off for 11 years – plenty of time to get rid of it entirely.
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