• Says proprietary trading has “low or no real economic value,” should not be done by banks that have government backstop.
• Liquidity is not an “inherent public benefit” that justifies larger public costs for overseeing highly complex markets.
• Says crisis showed how all Americans are on the hook for financial institutions’ decisions.
• Not inconceivable that potential costs associated with hedging and market-making within Volcker rule exemptions still outweigh benefits.
• Says supposed impact of Volcker rule on overall market liquidity or credit spreads is questionable.
• Calls on bankers to embrace ‘high-road virtues’, warns of hazards from taking ‘low road’ in banking .– MNI