Talk Radio News Service: News, Politics, Media

By Laurel Brishel Prichard- University of New Mexico/ Talk Radio News Service

Chairman of the President’s Economic Recovery Advisory Board and former Federal Reserve Chair Paul Volcker with Deputy Treasury Secretary Neal Wolin presented the “Volcker rule” to the U.S. Senate Committee On Banking, Housing and Urban Affairs Tuesday evening.

Volcker and Wolin gave an overview of how implementing more restrictions on large banks would make sure that in the future America does not have to bail out banks that are “too big too fail”.

The “Volcker rule” would prevent banks from using their clients as a front in order to make money that will not serve said clients.

Many of the committee members had concerns over what would be considered proprietary trading and how there would be a check system on banks to ensure that there would not be a way around restrictions.

“The legislative language, I think, has to be pretty clear,” said Volcker.

Wolin made it clear that financial innovation is vital to the American economy and that financial institutions must bear risk on their own rather then the taxpayers.

Chairman Christopher J. Dodd expressed support for the proposal, but gave warning that he would not “beg for a sixtieth vote.”

There will be a follow up hearing on this matter Thursday with academic experts.