White House Pushes Volcker Rule

The Obama administration is strongly backing the so-called Volcker Rule, which limits the size of financial institutions and prevents commercial banks from making high-risk trades, as Congress continues to debate financial reform. The Senate is debating a consumer-protection agency, and Republicans say they could reach a deal with Democrats within the week. With the 2008 financial crisis in mind, many wish to see the end of banks that are “too big to fail.” The plan, named for adviser Paul Volcker, would restrict the banks to holdings no greater than 10 percent of the whole financial industry’s liabilities. The White House, waiting until markets closed Wednesday to release details of its plan, weighed in at a critical time during senate negotiations, ruffling some feathers. "It is not helpful to the process for the administration to be putting out positions right now on financial regs, especially as it relates to the Volcker rule," Sen. Bob Corker (R-TN) said.