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Trump Treasury nominee wants to loosen limits under Volcker rule: document
Source: Reuters
POLITICS | Mon Jan 23, 2017 | 6:53pm EST
Trump Treasury nominee wants to loosen limits under Volcker rule: document
By Lisa Lambert and David Lawder | WASHINGTON
Dialing back the Volcker Rule that limits banks' ability to engage in speculative investments is a top priority for President Donald Trump's nominee for U.S. Treasury secretary, Steve Mnuchin, according to a document seen by Reuters on Monday.
In written responses to questions posed by members of the U.S. Senate Finance Committee, Mnuchin said he would use his role as head of the interagency Financial Stability Oversight Council to give the Volcker Rule a stricter definition of proprietary trading.
In "prop trading" a financial firm uses its own money to invest in privately held companies, hedge funds and similar vehicles. The Volcker rule was designed to limit the type of risk-taking activities that helped land banks in trouble during the financial crisis.
"As Chair of FSOC I would plan to address the issue of the definition of the Volcker Rule to make sure that banks can provide the necessary liquidity for customer markets and address the issues in the Fed report," Mnuchin wrote in the document, which also included senators' questions and was verified by a Senate aide.
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Trump Treasury nominee wants to loosen limits under Volcker rule: document
By Lisa Lambert and David Lawder | WASHINGTON
Dialing back the Volcker Rule that limits banks' ability to engage in speculative investments is a top priority for President Donald Trump's nominee for U.S. Treasury secretary, Steve Mnuchin, according to a document seen by Reuters on Monday.
In written responses to questions posed by members of the U.S. Senate Finance Committee, Mnuchin said he would use his role as head of the interagency Financial Stability Oversight Council to give the Volcker Rule a stricter definition of proprietary trading.
In "prop trading" a financial firm uses its own money to invest in privately held companies, hedge funds and similar vehicles. The Volcker rule was designed to limit the type of risk-taking activities that helped land banks in trouble during the financial crisis.
"As Chair of FSOC I would plan to address the issue of the definition of the Volcker Rule to make sure that banks can provide the necessary liquidity for customer markets and address the issues in the Fed report," Mnuchin wrote in the document, which also included senators' questions and was verified by a Senate aide.
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Read more: http://www.reuters.com/article/us-usa-trump-volcker-idUSKBN1572X9
