Financial industry groups in the United States asked regulators to make radical changes to the Volcker Rule limiting risky activities by banks. The groups, including the Securities Industry and Financial Markets Association (SIFMA), believe that the rule as proposed could damage the liquidity of U.S capital markets and harm the economy. The changes requested include wider customer-focused principal trading, and exemptions for foreign sovereign bonds.
The groups submitted letters to the Fed and other federal regulators in a comment period that ended on Monday and sought major revisions to the proposed rule, said to be in compliance with the Dodd-Frank Act that established the rule. The letters cover restrictions on proprietary trading, hedge-fund and private-equity investments, with separate notes on municipal securities and securitization concerns.
“The proposed (Volcker) regulations are unworkable, not faithful to Congressional intent, and will have negative consequences for U.S.
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