american regulators, Canada requests exemption to Volcker rule, globe and mail, limits proprietary trading by banks, paul volcker, reduced market liquidity, Volcker rule, Volcker Rule Could Increase Financial System Risk, Wall Street Journal
Wall Street Journal – Feb 13, 2012
Canadian policy makers, concerned that the proposed “Volcker rule” in the U.S. will disrupt Canadian financial markets, lodged fresh objections to the banking rules with American regulators Monday, the deadline for public comment.
The proposed rule, as developed by former Fed chairman Paul Volcker, would restrict proprietary trading by banks. Critics of the proposed rule contend that corporate borrowing and trading might cost more as a result.
Canadian policy makers are concerned that the Volcker rule would limit liquidity in Canadian financial markets. The draft rule has already drawn concern from Europe, U.K. and Japan.
- Carney, Flaherty step up fight against US Volcker rule Globe and Mail
- Canada asks for exemption to Volcker rule Reuters Canada
- CTV.caDigitalJournal.comRelated articles »
Canada’s finance minister and the governor of the Bank of Canada have formally complained to their American counterparts that proposed banking reforms intended to address the excesses that led to the 2008 financial crisis could harm Canadian banks, business, investors and the government itself.
In a letter Monday to Treasury Secretary Timothy Geithner, Finance Minister Jim Flaherty warned that the reforms could have “unprecedented extraterritorial reach and significant cross-border effects” in Canada.
In his letter to Federal Reserve chairman Ben Bernanke, Bank of Canada governor Mark Carney argued the changes have the potential for “unintended impacts” on the Canadian financial system.