February 9, 2012
February 9, 2012
I’m writing in support of a strong Volcker Rule. I am in favor of free market capitalism and have no objection to financial firms getting involved with risky proprietary trading, provided that such activities do not endanger the stability of the financial system or rely on direct, indirect or even implied government support. Absent those conditions, what we have is not free market capitalism but crony capitalism.
The Volcker Rule would reestablish the badly needed firewall between the realms commercial and investment banking. And considering how severe and swift were the damages which ensued from a breakdown of that firewall, enforcement of the new rules should be backed up with penalties commensurately severe and swift.
The Big Banks will lobby to weaken any such rule, arguing that it will be too complex and costly for them to abide by. But that complexity is largely a result of allowing the banks to get too big in the first place. The only simpler alternative would be to break them up, into smaller, more manageable entities whose activities can be more easily regulated.
Thank you for considering my comment,
Jack McGregor
Woodland Hills, CA