INET advisory board member Simon Johnson has an op-ed in today’s Bloomberg Businessweek, in which he notes that the Dodd-Frank bill, although flawed, contains an item that is, in his words, “stunning.”
First, he lists the two main flaws:
"The Volcker Rule -- aiming to limit banks’ use of their capital in risky activities -- was watered down by the administration almost as soon as it was introduced in January and has now been negotiated down to almost nothing. Banks will still be able to take big bets with their own capital, as long as the deals don’t look like traditional proprietary trading."
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