Search
 
Best Practices

The Volcker Rule Dilemma

Are higher costs warranted to stave off future financial crises?

By John Hintze | Updated on March 01, 2012

As regulators begin final deliberations on the so-called Volcker Rule, treasurers and their financial service providers mostly see the sky about to fall after a recent analysis showed costs to use financial products from bonds to foreign exchange contracts would increase significantly. The sky did nearly fall in late 2008, however, when Lehman Brothers’ collapse threatened a domino effect across Wall Street, which leaves regulators to decide which outcome is worse.

Formally known as Restrictions on Proprietary Trading and Certain Interest in, and Relationships With, Hedge Funds and Private Equity Funds, the Securities and Exchange Commission’s proposal—nicknamed for its most esteemed supporter—drew thousands of comments by the Feb. 13 deadline. The majority support the provision, including those from former Federal Reserve Chairman Paul Volcker and the California Public Employees’ Retirement System (Calpers), arguing that the increased costs are warranted to prevent future financial crises.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.