Barney Frank: Tough Version of 'Volcker Rule' Will Be in Bank Bill

[flpoljunkie]

This is good news! If you would like to help keep up the pressure for a strong bill--sign this petition from Americans for Financial Reform-- 'a group of national and state organizations that have joined together to fix our financial sector and make sure it’s working for all Americans.' http://www.change.org/affil/petitions/view/dont_let_wall_street_lobbyists_sink_financial_reform_contact_congress_now

June 10, 2010

Frank: Tough version of 'Volcker rule' will be in bank bill

By Ronald D. Orol, MarketWatch

WASHINGTON (MarketWatch) -- Senators and House legislators on Thursday launched into a weeks-long effort to reconcile differences in two versions of sweeping bank-reform legislation approved in each chamber, with a key member arguing that when the package is completed it will include a tough "Volcker rule," barring big banks from making speculative proprietary derivatives and stock investments for their own accounts.

"You will have a tough version of the Volcker rule," said Rep. Barney Frank, (D., Mass.), chairman of the House Financial Services Committee.

Frank added that he believed many legislators are supportive of moving "in the direction" of a measure introduced by Democratic Sens. Carl Levin and Jeff Merkley, which would also cap the size of big banks and force financial institutions to divest hedge funds and private-equity units.

The measure, named after ex-Federal Reserve chief Paul Volcker, who currently sits on President Barack Obama's economic-advisory panel, could also prohibit big banks from selling packaged mortgages and then betting against them.

The provision was introduced in the Senate, but not included in a bank-reform bill approved in May. The Senate has a weaker measure that requires bank regulators to study the Volcker rule and follow the recommendations of the study. The House bill only allows bank regulators to impose restrictions similar to the Volcker rule, but doesn't require them.

"I think you will have one in the general direction that Sens. Merkley and Levin are moving in, a lot of people are supportive of it," according to Frank. Legislators have agreed to use the 1,974-page Senate bill as the base bill. "It will be tougher than in the House."

http://www.marketwatch.com/story/dems-and-gop-clash-at-bank-bill-conference-2010-06-10?dist=afterbell

[flamingdem]

1. Good news nt

[tranche]

2. They need to get this in. Good to hear.

[Cant trust em]

3. I think we're all happy to see this get toughened up rather than weakened.

Though there are probably other elements that will weaken it, but this is a positive step.

[w4rma]

4. Thank goodness. Our economy might stand a chance of recovering, with this. (nt)

[AtomicKitten]

5. K&R

[flpoljunkie]

6. Thanks for the K&R!

:)