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Banks Cling to Bundles Holding Risk 

April 23, 2014
The New York Times

The Volcker Rule doesn’t go into effect until 2015, but that hasn’t stopped big bankers and their supporters in Washington from trying to undermine it.

The latest fight involves another complex Wall Street creation, a financial instrument known as a collateralized loan obligation. Big banks want to be allowed to own them but regulators say such holdings can be hazardous and may allow the banks to evade the Volcker Rule’s prohibition on risky trading.

There have been countless battles over the Volcker Rule since it was first conceptualized in the Dodd-Frank law in 2010. Paul A. Volcker, the former Federal Reserve chairman for whom the rule is named, hasn’t talked about most of these fights, but this one is important enough that he has come forward to discuss it.

Read more: New York Times

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