On April 26th, Senators Levin (D-MI) and Merkley (D-OR) put out a letter calling on our financial regulators to finalize a strong version of the Volcker Rule by the summer. Twenty-two Senators signed the letter.
There is a draft companion letter circulating today in the House of Representatives that is being led by Rep. Blumenauer (D-OR3), Rep. Waters (D-CA35) and many other representatives. It is important that as many members of the House of Representatives as possible co-sign the companion letter. This would show the regulators that Congress is looking to them to complete the Volcker Rule by the summer, without loopholes.
Brief Background on the Volcker Rule
Haven’t heard about the Volcker Rule? At its heart, it’s about preventing banks that enjoy an implicit government backing from GAMBLING. On Wall Street, gambling is called proprietary trading. The basic idea is that banks that have received billions in TARP money and more billions in secret Fed loans (that were not disclosed to the public nor to Congress until Bloomberg filed a Freedom of Information Act request) shouldn’t get to act like a Hedge Fund, or someone “feeling lucky” in Vegas.
The Volcker Rule was a part of the 2010 law, Dodd-Frank. And as with many complex laws, Congress placed the responsibility of actually writing the final rule with the financial regulators: the SEC, OCC, Fed, FDIC and CFTC. These Agencies have released a draft of the rule, solicited public comment, and are now writing the final version of the rule.
It is important that the regulators write a strong final version of the rule without loopholes, but it is equally important that they not delay finalizing the rule. The letter from Merkley’s office, and the companion House letter, urge the regulators on just these points.
If you want to rein in Wall Street, and ensure that we have an insurance policy against future bailouts, you should call your House representative and ask him/her to co-sign Rep. Blumenauer et al’s Volcker Rule letter.
The easiest way to do this is to call the Capitol switchboard at (202) 224-3121, and ask for your Representative’s office by name. You can also look up your Representative on Open Congress.
But wait, what should I say?
When you call, we suggest you tell the staffer:
I am your constituent, and I am calling to ask Rep. _____ to co-sign the Volcker Rule letter being circulated by Rep. Blumenauer and Rep. Waters. The letter calls on the regulators to finalize a strong Volcker Rule by this summer.
In case the person you speak to needs more information about the Volcker Rule, you could tell them:
The Volcker Rule is section 619 of the Dodd-Frank Act. It is an important rule that will help address systemic risks to our banking system and the Too Big to Fail status of institutions managing trillions of federally insured deposits. I support the rule and ask you to co-sign the letter from Rep. Blumenauer and Rep. Waters.
Filed under: activism, Occupy Wall St, OWS, wall street | 3 Comments