Canada seeks exemption from Volcker Rule, while Paul Volcker writes to SEC in supports of it!

Canada has joined a growing list of those who opposed to the introduction of the Volcker Rule, which seek to ban proprietary trading by banks.

In letters to their U.S. counterparts, Bank of Canada Governor Mark Carney and Finance Minister Jim Flaherty said the ban on proprietary trading by banks, known as the Volcker rule, would have unintended consequences for Canada, as stated:

These include limiting liquidity in the government debt market and hampering the ability of bank-sponsored mutual funds to provide services to their clients.

Reuters news covering story here

Late addition:

As just reported on CNN, Paul Volcker has also sent his own letter to the SEC, (yep, you guessed it), in support of his own Volcker rule, and criticising those banks who are opposed to it  as reported by CNN here

2 Responses

  1. […] he attacks the Canadian Central Bank for their opposition to the Volcker Rule (see earlier blog here). As part of his argument, Simon cites a lengthy paper by BetterMarkets, in support of the Volcker […]

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