"The undersigned companies and organizations, representing a diverse range of industries, believe that the Volcker Rule will have far-reaching negative consequences that will impede our ability to raise capital and manage risk," the letter says. "As such, we urge regulators to refrain from implementing the rule in its current form, hold a roundtable with stakeholders representing different market participants, and re-propose the Volcker Rule to provide additional time to identify unintended consequences and craft policies to avoid them."
The letter warns that the proposed Volcker Rule is likely to result in the following negative consequences for business:
* Impairment of Corporate Liquidity and Restricted Cash Management Activities – The rule may force financial institutions to curtail their participation in markets in order to avoid accidentally violating this complex and unwieldy law.
* Reduced Ability of Businesses to
* Higher Costs for Both Borrowers and Investors – The reduced market liquidity imposed by the rule would force companies that issue debt to pay higher rates in order to clear the market and investors would have higher costs when they sell their investments into a less liquid market.
* Undermining U.S. Competitiveness – Because no other nation is imposing such a regulatory infrastructure on their markets, businesses accessing U.S. capital markets will be placed at a competitive disadvantage.
* Treasury Carve-Out Validates Negative Impacts for Corporate Market – The rule exempts U.S. Treasury securities. Imposing the Volcker Rule's restrictions only on the markets that are used by the corporate community is no way to advance our national interests.
Full text of the letter and list of 27 undersigned companies and organizations is available here:
Since its inception in 2007, the
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