Today, Congresswoman Maxine Waters sent the following letter to Rep. Paul Ryan, commending him on his strong stance [Article: http://thinkprogress.org/economy/2012/05/07/479207/paul-ryan-volcker-rule/ ] in favor of the concepts expressed in the "Volcker Rule." In addition, Rep. Waters asked him to join her in the effort to ensure transparent and workable implementation of the rule. The full text of the letter is below:
Chairman Paul Ryan
Committee on the Budget
U.S. House of Representatives
207 Cannon House Office Building
Washington, DC 20515
Dear Chairman Ryan:
I read with great interest your comments from last week, where you noted that it's important that "if you're a bank and you want to operate like some non-bank entity like a hedge fund, then don't be a bank. Don't let banks use their customers' money to do anything other than traditional banking. Those to me are the key tenets of reform which we did not see happen."
I agree with you that we must ensure that firms that are backed by customers' deposits are engaged in traditional banking activities -- not speculation or trading. That is precisely the reason why I supported a strong Volcker Rule, which was codified in Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
Our federal banking regulators, as well as the Securities and Exchange Commission and the Commodity Futures Trading Commission, are currently in the process of finalizing their proposal implementing the Volcker Rule. I urge you to join me in calling on our regulators to implement a clear and effective Volcker Rule without delay, so that we can see this key tenet of reform happen.
As you know, American families and businesses suffered when our banking system broke down before. The Volcker Rule is one step towards ensuring that American taxpayers are never again be asked to bail out banks' bad bets. Let's join together to support a strong Volcker Rule.