On the Hill

Volcker Pitches His Rule

Paul Volcker was on the Hill Tuesday to pitch the rule that carries his imprimatur: The so-called Volcker Rule, which would separate commercial banking from investment banking. Volcker dismissed industry concern that it would be difficult to separate the activities, saying “Every banker I speak with knows very well what ‘proprietary trading’ means and implies.” Commercial banks would still be allowed to trade so long as it is undertaken for customers, and hedge funds and smaller institutions could continue aggressive betting so long as they are allowed to die when they fail.