Washington, DC – Oregon’s Senator Jeff Merkley issued the following statement on the comments by Federal Reserve Chairman Ben Bernanke that regulators will probably delay implementation of the Volcker Rule.
“I am disappointed to hear Chairman Bernanke’s comments that regulators will probably not meet the statutory deadline for implementing the Volcker Rule. Delaying the implementation of this rule, which builds an essential firewall between loan-making banks and high-stakes trading, is unwise. It leaves our economy exposed to the risks of the type of trading losses that paralyzed our economy in 2008
“The Federal Reserve and other regulators have had 2 years to implement the Merkley-Levin provision in the Dodd-Frank bill, which laid out clear rules of the road. With the on-going threat of a foreign sovereign debt crisis in Europe, reining in the high-risk trading that only recently blew up MF Global is far too important to delay. The regulators need to go back to the statute and write strong, simple restrictions instead of trying to accommodate every banking lobbyist’s loophole wish list.
“I urge Chairman Bernanke not to give in to those who want to slow down implementation of a strong Volcker Rule that separates old-fashioned banking — making loans to businesses and families — from high-risk trading. The regulators should give industry the certainty and clarity it needs, and do so quickly.”