SHAHEEN: NEW WALL STREET REGULATORY REFORMS WILL PROTECT TAXPAYERS

December 10, 2013

U.S. Senator Jeanne Shaheen (D-NH) today welcomed a vote by federal regulators to approve the "Volcker Rule," which bans high-risk trading by large, federally insured banks.  Shaheen, who voted against the Wall Street bailout because it lacked accountability, also called for vigilant oversight to ensure that taxpayers and investors are not put at risk.  Shaheen was an original cosponsor of legislation to create the Volcker Rule with Senators Jeff Merkley (D-OR) and Carl Levin (D-MI).

"American taxpayers should never be on the hook when Wall Street banks gamble," Shaheen said. "Today's rule helps protect our economy, taxpayers and consumers by separating traditional banking from risky behavior. As the rule is implemented, we must ensure that it is effective and cannot be abused.”

After Shaheen's legislation to create the Volcker Rule was enacted as part of the Wall Street Reform Act, Shaheen urged federal regulators to implement a strong rule without loopholes.  Shaheen wrote to federal regulators in May 2012 in light of the "London Whale" trades at JPMorgan Chase, which resulted in billions of dollars of losses for the federally insured bank.  Citing the need to protect taxpayers and everyday investors, Shaheen successfully urged federal regulators to tighten an earlier draft of the rule to prevent this type of behavior.

Shaheen also joined a letter requesting regulators finalize the rule as soon as possible and eliminate loopholes included in a draft version of the rule.  The letter pushed back against lobbying efforts to weaken the measure.