Volcker Rule May Adversely Impact Munis
Tuesday, November 22, 2011
The Bond Buyer
By Robert Slavin
Some market participants are concerned that the current version of the Volcker Rule would hurt the municipal bond market.
Named after Paul Volcker, the former Federal Reserve chairman, the rule would restrict federal insured banks’ ability to trade for their own benefit.
The rule comes in the wake of the 2008 financial crisis, when highly leveraged banking institutions lost huge sums on proprietary investments. …