Volcker Rule Should Build Hedging Firewall: Ex-FDIC Head

Law360, New York (May 31, 2012, 5:22 PM EDT) -- Former Federal Deposit Insurance Corp. Chairman Sheila Bair on Thursday said the Dodd-Frank Act's ban on proprietary trading should set up a “firewall” to protect big banks' commercial operations and deposits by blocking them from using complex derivatives for hedging transactions.

At an occasionally fiery panel discussion moderated by the U.S. Commodity Futures Trading Commission, Bair said the so-called Volcker rule is intended to prevent banks from using insured deposits for funding hedging activities that are designed to make profits for a bank rather than protect...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.