News Tip: Banks Have Served Their Time Under Volcker Rule, Expert Says

On Wednesday, federal bank regulators revealed plans to soften the Volcker Rule, which would allow banks to resume some trading activities restricted under the 2010 Dodd-Frank law.

Quotes: 
“The imposition of the Volcker rule was an understandable penalty for a banking system that was running wild before the financial crisis,” says Campbell R. Harvey, a business professor at Duke University specializing in financial markets. “Banks were acting like hedge funds knowing that no matter how much risk they took, the government was there to bail them out.”

“However, like almost all penalties, banks and major financial institutions have served their time. It is time to walk back some of the punitive provisions -- but retain a framework that will greatly diminish the chance that taxpayer money is ever used again to bail out financial institutions.”

Bio:
Harvey is a business professor specializing in financial markets, global risk management and portfolio management.
https://www.fuqua.duke.edu/faculty_research/faculty_directory/harvey/

For additional comment, contact Harvey at:
cam.harvey@duke.edu