A business group and a public advocacy group clashed at a House hearing over the impact of the Volcker rule limiting risky trading by banks, and how to determine when a firm is involved in the sort of proprietary trading restricted by the rule.
The Volcker rule, named after former Federal Reserve chairman Paul Volcker, would ban banks from proprietary trading or making bets with their customer's deposits. The rule is required by the 2010 Dodd-Frank Wall Street reform law but federal regulators are still working on the final version of the rule.
The U.S. Chamber of Commerce clashed with the public advocacy group Better Markets Inc. on how to determine when a trade is proprietary and why regulators have been unable to come up with a single version of the rule.
Dennis Kelleher, president and chief executive of Better Markets Inc. said the need for the Volcker rule was highlighted by JP Morgan's "London Whale" trade, where a trader from the bank's London unit made large big bets
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