VOLCKER RULE TO GET THE BOOTY

BANZAI7 NEWS--Senators are expected to scrap President Barack Obama's proposal to prohibit commercial banks from certain risky trading activities, people familiar with the matter said, a setback for the administration's bid to limit the size and scope of the largest U.S. banks.

The proposal, dubbed the "Volcker rule" after former Federal Reserve Chairman Paul Volcker, would have essentially prevented any commercial bank with federally insured deposits from owning a division that makes speculative bets with its own capital.

WB7: Just to be clear, anyone who thinks 'prop trading' was not one of the causes of the financial meltdown has their head screwed on completely upside down. Prop trading is where the banks deploy boatloads of leverage to make bets on things like credit default swaps and oil. The rational reason for scrapping the Volcker Rule is campaign finance booty or the lack thereof if the banks get angry.

Are banks supposed to (a) make loans or (b) speculate in the markets? If you answered (a),  Senator Nimrod who knows all about campaign finance, thinks you know nothing about high finance.

Senator Nimrod will be needing a job Wall Street.