U.S. Corporations Join Volcker Rule Critics' Club

A group of large corporations, including General Electric and Boeing, have joined the fight against the Volcker rule that limits the ability of banks to make speculative bets with their own funds.

In a letter to regulators, dated Feb. 14, the companies and the U.S. Chamber of Commerce argue the Dodd-Frank law reform will "have far-reaching negative consequences that will impede our ability to raise capital and manage risk."

They say regulators may have overlooked the rule's impact on end users of financial markets.

The Volcker rule, named for former Federal Reserve Chairman Paul Volcker and mandated by the 2010 Dodd-Frank financial oversight law, aims to prevent financial institutions that receive government backstops, like deposit insurance, from making risky trades with their own money.

Heralded by supporters as a means to rein in the risk-taking that nearly toppled the financial system during the 2007-2009 financial crisis, the Volcker rule has been criticized for taking liquidity out of financial markets.  Read more.