Banking Lobbyists Make a Run at Reform Measures

As Congress rushes this week to complete the most far-reaching financial reform plan in decades, the banking industry lobbyists are pushing for provisions to undercut a central pillar of the legislation, known as the Volcker Rule, which would forbid banks from using their own money to make risky wagers on the market and would force them to sell off hedge funds and private equity units, the New York Times reported today. To secure the support needed for their bill, Senate negotiators are leaning toward creating a series of exemptions to the Volcker Rule that would allow banks to continue to operate these businesses as investment funds that hold only client money. The three main changes under consideration would be a carve-out to exclude asset management and insurance companies outright, an exemption that would allow banks to continue to invest in hedge funds and private equity firms, and a long delay that would give banks up to seven years to enact the changes.

http://www.nytimes.com/2010/06/21/business/21volcker.html