The Volcker Rule, named after Paul A. Volcker, the former chairman of the Federal Reserve, is meant to ban financial institutions that are protected and subsidized by the federal government from trading for their own account. That is, it’s pretty simple: Traders shouldn’t speculate for their own personal gain using the money you and I pay in taxes.
Yet bank lobbyists with complicit regulators and legislators took a simple concept and bloated it into a 530-page monstrosity of hopeless complexity and vagueness.
They couldn’t kill the rule. Instead, they are getting Congress and regulators to render it morbidly obese and bedridden.
How this works:
1. Legislators (and O-Bummer) can say they passed tough reform. Yes, they passed something but it’s a piece of shit.
2. Banks get to complain about how evil government is and how over regulated they are — even though they get to write the laws and water them down as they see fit.
3. The regulators get to feel like they’re an important piece of the puzzle, but they’re really jerking themselves off. They’re an important part of the theatre show, but they’re not protecting you and me.