Volcker Warns on Swaps Desks

Former Fed chairman Paul Volcker is concerned about a controversial proposal that could force big banks to spin off their lucrative derivatives businesses. In a letter to senators from both parties, Volcker said he has concerns about the “extensive reach” of a Senate proposal that could force banks to spin off their swaps desks.

“The provision of derivatives by commercial banks to their customers in the usual course of a banking relationship should not be prohibited,” Volcker said. – Reuters

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