SEC Mary Schapiro and Paul Volcker’ Secret Date

For an 84 year old guy who is not making any money on this, Paul Volcker is a hard working animal.

The Former Federal Reserve Chairman Paul Volcker  is the person who penned the namesake rule which is part of the Dodd Frank Act.

The Volcker Rule is intended to have investment banks exit proprietary trading, in-house hedge fund ownership and other perceived risky investments. This was drafted and adopted as a result of the financial crisis. Volcker, Obama and the rest of the Democratic business hating team believed that the bad investment banks should never ever again be trusted. Accordingly, by trading their own money they could blow-up their firm and the country.

Volcker did not rest with writing the rule. He is a passionate and unrelenting  advocate appearing on Bloomberg, the BBC, CNBC and wherever anyone would listen.

Paul Volcker had a romantic post Valentine’s date with U.S. Securities and Exchange Commission Chairman Mary Schapiro this week to discuss the proposed ban on proprietary trading.

“Proprietary trading of financial instruments — essentially speculative in nature — engaged in primarily for the benefit of limited groups of highly paid employees and of stockholders does not justify the taxpayer subsidy implicit in routine access to Federal Reserve credit, deposit insurance or emergency support,” Volcker wrote.

The ban on proprietary trading, proposed by Volcker when he served as an economic adviser to President Barack Obama, was among the most prominent provisions in the 2010 Dodd-Frank Act’s overhaul of Wall Street rules.

For a 7 foot tall chain cigar smoking guy you gotta admire his hustle whether you agree with him or not.

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