February 2nd, 2010
07:16 PM ET
13 years ago

Senators cool to 'Volcker rule'

Washington (CNNMoney.com) - The fate of President Obama's latest proposal to rein in banks was thrown into doubt on Tuesday after it got a chilly reception from key lawmakers.

The Senate Banking Committee grilled Obama adviser Paul Volcker who has, for months, been championing a proposal to curtail so-called proprietary trading.

The aim is to stop big banks from making trades on their own accounts, especially since commercial banks have access to funds back-stopped by the government.

President Obama, in formally announcing the proposal last month, dubbed it the "Volcker rule."

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Filed under: CNNMoney.com • Paul Volcker
soundoff (6 Responses)
  1. C. Farrell, Houston, Tx

    I agree and those banks that don't follow the rules, let them fail, no more bailout money. But John McCain will probably vote no because he and his son are the biggest bank theives in history.

    February 2, 2010 08:04 pm at 8:04 pm |
  2. xlntcat

    Well, Volcker always had to fight Congress tooth and nail to do the right thing so this isn't new. Both Congress and the public hated Volcker but the nation benefited from his resistance to political pressure as he broke the back of run away inflation. The popular thing frequently doesn't equate to being the right thing. He's has fought these very same corrupt Senators before and the nation should be glad that Volcker won.

    February 2, 2010 08:17 pm at 8:17 pm |
  3. Stop the Nonsense

    Senator Dodd: Congress never feel the fear of doing too much. It's not something you can do. It's lack of action and water-downed versions of bills that have crippled this country.
    It's time to "man up" and stand for something.

    February 2, 2010 08:27 pm at 8:27 pm |
  4. disgustedwithgopintexas

    now we know whose pockets the OUR senators are in.

    February 2, 2010 08:37 pm at 8:37 pm |
  5. ThinkAgain

    I know a lot of people get all up-in-arms about our government interfering with the banking system, but you know what? The banks have proven that they are irresponsible, negligent and utterly incapable of making decisions that benefit their customers.

    So they deserve to have very strict oversight.

    Think of it this way: Would a bank loan you money if you gambled away what you had, ran up huge credit card debt, defaulted on your loans and when you did get a little extra money, go blow it on a lavish party or fancy trinkets?

    I think we all know the answer to THAT one. And as long as the U.S. Government (i.e., taxpayers) guarantee their deposits, then WE get to call the shots!

    So "Key lawmakers," time to start representing your constituents, i.e., the American people, and not the banking industry.

    And if the banking industry can’t make a profit with reasonable regulation in place, then they don’t deserve to survive in the marketplace.

    February 2, 2010 08:48 pm at 8:48 pm |
  6. gary davis harbor oregon

    the banks need to be rained in so anyone who opposses the restriction must have been bought out by the bankingindustry .. traiders are amoug use just Like asswipe McCain going after don't ask don't tell the dumb ass forgot he was for getting rid of the rule . so McCain you remind me of Hitler ..he wanted control of policy too so go home John before you get voted out of office dip stick PaLIN BOY WONDER better yet go get Palin and get into a ship bound for outer space dipstick 🙂

    February 2, 2010 08:53 pm at 8:53 pm |