This story appeared in Bank Digest.
The Committee on Financial Services has held a hearing entitled "The Impact of the Volcker Rule on Job Creators, Part I," which considered the potential impact the Volcker Rule would have on the U.S. economy and its capital markets. Among other things, the hearing examined the effect of the Volcker Rule on the ability of financial institutions to own tranches of collateralized debt obligations backed by trust preferred securities and the ways in which H.R. 3819, the Fairness for Community Job Creators Act, would modify the Volcker Rule's applicability to financial institutions that hold such ownership interests.
In his opening statement, Chairman Jeb Hensarling (R-Texas), an opponent of the regulation, called the Volcker Rule "a solution in search of a problem," and argued that "you cannot win a war on poverty as long as you are conducting a war on jobs."
- Opening Statement of Rep. Maxine Waters (D-Calif).
- Statement of Kenneth E. Bentsen Jr., President and Chief Executive Officer, Securities Industry and Financial Markets Association.
- Testimony of Charles Funk, President and Chief Executive Officer, MidWest One Bank on behalf of the American Bankers Association.
- Testimony of Professor Simon Johnson, Ronald Kurtz Professor of Entrepreneurship, MIT Sloan School of Management.
- Testimony of Elliot Ganz, General Counsel and Executive Vice President, The Loan Syndications and Trading Association.
- Statement of David C. Robertson, Partner and Director, Treasury Strategies, on behalf of the U.S. Chamber of Commerce.
- Committee Memorandum.
- Statement of Rep. Robert Hurt (R-Vir).