Just one day after the Obama administration formally spelled out its proposal for the Volcker Rule, Seantor Chris Dodd has basically shot it down.
Dodd said that senators are likely to leave it up to regulators to pursue the rule. He also said that it’s important to allow the “business community” to make recomendations.
In short, the Volcker rule is dead. Again.
“I can’t write regulations, this is way beyond the competency of Congress,” Dodd said on Bloomberg News.
Michael O’Brien of The Hill reports:
Dodd said he’s reached out to different regulatory bodies to see what capacity they have to make similar regulations, in leiu of legislation to pursue such a rule.
“The business community needs certainty on this issue,” he said. “We ought to leave it to them to make the recommendations.”
The Banking chairman also addressed the prospects for where any consumer protection agency would be housed, amid reports that some committee members favour placing it within the Federal Reserve.
“I think what we’re talking about here is an independent office or bureau,” Dodd argued. “Where that’s located is less relevant. What existed in the past is an authority under the control of the Fed.”