Intended and Unintended Results of the Proposed Volcker Rule
Abstract
Regulation is written with the intent of protecting the vulnerable. However, it can cause an undesirable result if written without understanding how the positive intent can have a negative impact. In its present form, the proposed Volcker Rule has the potential of expanding the liquidity crisis that devastated the housing market into the capital markets. Risk will be transferred to less regulated entities. Banks conducting business in the U.S. or with U.S. “residents” will be at a competitive disadvantage.Download Info
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 34672.Length:
Date of creation: 12 Nov 2011
Date of revision:
Handle: RePEc:pra:mprapa:34672
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Related research
Keywords: Volcker Rule; Regulation; Prop Trading; Market Making; Hedge Fund; Risk;Find related papers by JEL classification:
- E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
- G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
- D02 - Microeconomics - - General - - - Institutions: Design, Formation, and Operations
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy-Making and Implementation
- L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-11-21 (All new papers)
- NEP-REG-2011-11-21 (Regulation)
- NEP-RMG-2011-11-21 (Risk Management)
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