The Volcker Rule: Unworkable and Unwise

The last two years have seen the publication of numerous detailed and sometimes thoughtful financial reform proposals by the US Treasury, various financial regulators, leading members of Congress, independent groups and academics. Now, suddenly, a new idea for reform has emerged from the White House — prohibiting proprietary trading in bank holding companies. Of course, it is not really a new idea; rather it is one of Paul Volcker?s very old ideas which he is trying to resurrect in the current up-for-grabs policy environment.