Bank of Canada's Carney Has 'Concerns' With Volcker Rule Draft
(See DAVOS <GO> for more on the World Economic Forum.)
Jan. 28 (Bloomberg) -- Bank of Canada Governor Mark Carney said he’s concerned U.S. regulators’ recent efforts to prevent deposit-taking banks from trading with their own money could make markets less efficient.
The latest draft of the so-called Volcker rule looks like it might prevent banks from buying securities in the course of conducting trades for clients, Carney said in an interview with Bloomberg Television’s Erik Schatzker at the World Economic Forum in Davos, Switzerland.
“It is not clear the definition of ‘market making’ versus ‘proprietary trade,’” Carney said. “There appears to be a presumption that something is proprietary,” adding “we think that it should go in reverse.”
The Volcker rule, named after former U.S. Federal Reserve Chairman Paul Volcker, 84, seeks to stop regulated banks that receive support from the federal government from making risky bets with their own money. Goldman Sachs Group Inc., which was the most profitable securities firm before converting to a bank in 2008, is among Wall Street firms that have argued the limitations could harm capital markets by reducing banks’ role.
Carney, 46, has become one of the world’s most important financial policy makers since he was named in November to succeed Mario Draghi as chairman of the Financial Stability Board. Group of 20 leaders have charged the FSB with making recommendations for global financial reform and to monitor progress. Draghi stepped down from the role after becoming president of the European Central Bank. Carney and Draghi both held roles at Goldman Sachs earlier in their careers.
‘Obvious Concerns’
“I am speaking from my perspective at the Bank of Canada,” Carney said. “We and other officials in Canada have looked at the current draft of the Volcker rule and we have some obvious concerns.
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Canada News Centre - Dr. Kellie Leitch will announce Government ...
Friday, January 27, 2012
Dr. Kellie Leitch, Parliamentary Secretary to the Minister of Human Resources and Skills Development and to Canada’s Labour Minister, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development, will announce Government of Canada support to help local residents with disabilities find jobs.
Dr. Leitch will be available for a photo op and to answer questions from the media following the announcement.