The Uncertain Dangers of the Volcker Rule
This article in The American at AEI notes that,
There is a disturbing and neglected question at the heart of the controversy over the Volcker Rule’s prohibition of proprietary trading at bank holding companies: are the prospective gains from these structural reforms worth risking the destruction of U.S. global universal banks and a significant decline in the U.S. share of global capital markets? The answer is obviously not.
The author is the Henry Kaufman Professor of Financial Institutions at Columbia Business School and a visiting scholar at the International Monetary Fund. He thanks Paul Schultz, Allan Meltzer, and Peter Wallison for comments. The opinions expressed here are the author’s, and are not necessarily shared by the International Monetary Fund.