General Discussion
Showing Original Post only (View all)Dodd-Frank push-out provision: Volcker rule already makes it unnecessary [View all]
The Dodd-Frank push-out rule rolled back in the current spending bills says banks can't invest in derivatives and similar risky funds and have to "push out" such investments to non-federally insured affiliates. But removing it doesn't permit banks to invest in such funds again, because the "Volcker rule" -- requested by President Obama -- already says banks can't use their proprietary (FDIC) funds to make such investments:
http://en.wikipedia.org/wiki/Volcker_Rule
http://www.bloomberg.com/news/2014-10-20/did-bank-rules-kill-liquidity-volcker-frank-respond.html
Per NPR, Barney Frank, one of Dodd-Frank's authors, supported elimination of the push-out rule:
http://www.npr.org/2014/12/11/370156241/controversial-budget-bill-would-roll-back-dodd-frank-provision
Long and short: removing this provision won't cause the sky to fall.
...............
edit to fix subject line.