Wall Street CEOs Personally Lobby Federal Reserve to Weaken New Financial Regulations

Travis Waldron
Think Progress / News Report
Published: Thursday 3 May 2012
“The banks have been so successful weakening the rule that Volcker himself was disappointed in its outcome.”
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Federal regulators in charge of writing the Volcker Rule, which would ban federally-insured financial institutions from risky proprietary trading, are moving at a faster pace than expected and could have the rule finalized by September.

Wall Street banks have been lobbying to weaken the rule since it was originally proposed by its namesake, former Federal Reserve Chairman Paul Volcker, and now that it is just months away from finalization, their efforts are getting stronger. The chief executives of six major Wall Street banks, led by JPMorgan Chase CEO Jamie Dimon, traveled to Washington yesterday to personally lobby the Federal Reserve on multiple issues — weakening the Volcker Rule chief among them — Bloomberg reports:

JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon led Wall Street bosses in a closed-door meeting to personally lobby the Federal Reserve about softening proposed reforms that might crimp their profits.

The contingent, which included Bank of America Corp.’s Brian T. Moynihan, 52, and Goldman Sachs Group Inc.’s Lloyd C. Blankfein, 57, pressed the Fed on rules they said would overstate trading risks and harm financial markets, the central bank said yesterday in a statement. They also discussed what they see as flaws in Fed stress tests designed to gauge the strength of the nation’s largest lenders.

Wall Street banks, with the help of Massachusetts Sen. Scott Brown (R), were able to water down the Volcker Rule even before it became law as part of the 2010 Dodd-Frank Wall Street Reform Act. Since the law passed, they have pushed to make it even weaker, falsely arguing that it poses a major risk to the American economy. The banks have been so successful weakening the rule that Volcker himself was disappointed in its outcome.

Not all bankers oppose the rule. Greg Smith, the former Goldman Sachs trader who publicly resigned from the firm, unknowingly made the case for the rule in an editorial in the New York Times, and a former Merrill Lynch banker recently said the rule was “necessary to correct a mistake that poses a danger to our economy.”



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ABOUT Travis Waldron

Travis Waldron is a reporter/blogger for ThinkProgress.org at the Center for American Progress Action Fund. Travis grew up in Louisville, Kentucky, and holds a BA in journalism and political science from the University of Kentucky. Before coming to ThinkProgress, he worked as a press aide at the Health Information Center and as a staffer on Kentucky Attorney General Jack Conway’s 2010 Senate campaign. He also interned at National Journal’s Hotline and was a sports writer and political columnist at the Kentucky Kernel, the University of Kentucky’s daily student newspaper.

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3 comments on "Wall Street CEOs Personally Lobby Federal Reserve to Weaken New Financial Regulations"

Richard Avard

May 03, 2012 11:38pm

Whaever the people tolerate, they surely will get more thereof.

Anyone with at least half a brain knows that our government has completely been bought off by the Corporate Elite including the Banksters , Wall Street, and the Military/Industrial complex, this purchasing being so simple under our insane system

When the government colludes with Big Biz, that is the very essense of Fascism
So, by definition, this nation has become a fasciast State.
And of late, the Federal government, knowing that the people are awakening, is demonstrating more and more its fasciats nature. Note that the Feds have everything in place so as to be able to declare Martial Law and pulling it off. zUnder the ruse of preparing for "Terrorism", the Patriot Act was passed which model was taken right out of the Nazi Handbook to wit: The President how has the power to national all local police department, Posse Commtatis has been rescinded, Detainament camps have been set up all over the US, etc etc

Jefferson said that if ever the government ceases to serve the people and becomes corrupt and ( a situation he fully expected to happen - probably within 200 years of its founding) then is not only the right for the people to overthrow that government, it is in fact their duty

People, we are there.

The Occupyu movement is scaring the hell out of the Elites No violence, and they acannot declare Martial Lsw

Keep up the Demonstrations Thie election, re-elcct no one. Buy only from local merchants. start growing your own food if you can Buy nothing you dont have too. Buy only Amerocan made, or dont buy ata all

pitch1934

May 03, 2012 5:13pm

As if those greedy bastards are not hauling in money hand over fist.

Jefffrey Hill

May 03, 2012 10:29am

Not CRIMINALLY prosecuting and imprisoning for life Obama's thieving Wall Street "Savvy Businessmen" billionaire buddies is threatening the world economy again.