One of the most contested provisions of Wall Street reforms act is here. It`s the so-called Volcker Rule, named after the former Fed chairman who inspired it.
Five years post-financial crisis, U.S. regulators are expected to vote tomorrow on a final version of the rule. It is the element of the Dodd-Frank reform law that is design to keep some of the nation`s biggest banks from trading for their own accounts. Many believe that such proprietary trading by FDIC-backed institutions could put taxpayers at risk if the trades melt down.
Dick Bove, Vice President of Equity Research at Rafferty Capital shares his insights.