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Senate to Can Volcker Plan

Treasury Secretary Timothy Geithner gathered with industry trade groups on Tuesday to urge them not to oppose financial reform, but, as with so much else, it appears the true obstacle to Obama’s agenda is the Senate: The Wall Street Journal reports that key senators are bailing on the Volcker Rule, which would prohibit commercial banks from certain risky trading activities. When Senate Banking Committee Chairman Chris Dodd unveils the Senate’s plan next week, the Journal says it will give regulators the power to “limit and potentially ban risky trading at banks,” but it will not ban such trades outright, as former Federal Reserve Chairman Paul Volcker has advocated. Under Dodd’s plan, regulators will review banks on a case-by-case basis and be able to order them to limit or halt activities that are too risky.