"Obama reasserts Volcker rule"

[Clio the Leo]

Obama reasserts Volcker rule

WASHINGTON (Reuters) - The Obama administration reasserted its commitment to banning proprietary trading by banks in a message to the U.S. Congress on Wednesday, despite signs lawmakers were unlikely to adopt such a rule.

In a document obtained by Reuters, the White House also called for limiting risky "prop trading" -- or the buying and selling of investments on financiers' own books unrelated to customers' needs -- at large, non-bank financial firms.

The message showed the White House is determined to push ahead with its so-called "Volcker rule," first proposed in January to markets' surprise, as the U.S. Senate inched its way toward acting on new financial reform legislation.

Authored chiefly by White House economic adviser Paul Volcker, the rule arrived late in a reform debate that has raged for months since the severe 2008-2009 financial crisis tipped the U.S. economy into a deep recession.

Separately, Treasury Secretary Timothy Geithner said on Wednesday that he would not accept regulatory reform that failed to protect financial consumers. He called for a dedicated, independent authority to do that.

President Barack Obama in mid-2009 proposed a comprehensive package of reforms aimed at preventing another crisis. Most of them were embraced in a bill approved in December by the House of Representatives, but the Volcker rule was not in the mix.

By the time Obama and Volcker unveiled it almost six weeks ago, the Senate was well along in its debate about reforms. The Volcker rule complicated Senate Banking Committee Chairman Christopher Dodd's task of moving a reform bill to the Senate floor, and he has still not managed to do that.

Amid ferocious lobbying by banks and Wall Street firms opposed to reforms, Republicans have pushed the Senate toward a narrower, compromise bill that looks likely to exclude the Volcker rule and other key Obama proposals.

http://www.reuters.com/article/idUSTRE6224B920100303

[ellenfl]

1. good. eom

[FrenchieCat]

2. Just keep coming Pres. Obama.......

Just keep moving forward, regardless of those who want to stop you! :patriot:

[denimgirly]

3. Crossing My Fingers he doesnt change his mind or backs done....PLEASE, PLEASE stay strong!

I really hope he doesnt back peddle on this....i am so nervous about this. I really dont want this thing turning into another watered-down healthcare-like bill. Right now the repubs have a strong message going into the Nov elections so having a strong, passed financial reform bill is very important for dem. right now...and the volcker rule is a major part (no compromises this time mr. president).

Sadly, it appears congress is being flooded so ferociously with lobbyists that there is no queston the final bill will be worthless and the president will either have to scrap reform or leave it as an ongoing battle for years. In ways without campaign finance reform doing this banking reform is frankly an impossible task and so at the very least if Obama can keep strong and maintain the insistence of the Volcker rule but end up not getting it i will regain respect for him for trying (right now i have lost a lot of respect due to the healthcare debacle). At least the constituents of both parties agree that reform needs to be done. Of course repub leaders dont want it but that is expected.

[dmr]

5. Welcome to DU, denimgirly

:hi:

[denimgirly]

6. HEY...THANK YOU!!!

:hi:

[dmr]

4. Good

People here were wondering last week to whatever happened with Volcker's rule. Good to see it being re-enforced by the White House. Hopefully, Congress will take heed.

[FrenchieCat]

7. Of course, the media tried to let it die with a whimper!

Who chooses what the news will cover? Must be bankers and the RNC!