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Posted 02/01/2012 By Matt Stichnoth

PLUS, THINGS WORKED OUT SO WELL THE LAST TIME BANKS ALL OWNED THE SAME TYPE OF ASSET CLASS

Bloomberg reports that the U.S. regulators are considering cutting foreign governments some slack regarding their objections to the Volcker Rule:

U.S. banking regulators are exploring whether they can exempt sovereign debt from the Dodd-Frank ban on proprietary trading after foreign governments complained that the rule could raise borrowing costs and impede the flow of capital, a person familiar with the talks said.

Five regulatory agencies are taking public comments on a proposed version of the so-called Volcker rule, which was included in the 2010 financial regulatory overhaul to ban deposit-taking banks from trading with their own money. [Emph. added]

An exemption for sovereign debt!? Of course! What could go wrong? Oh, wait. . .

11:52 AM

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