Regulators, Banks Grapple With Volcker Rule's Reach

New financial reform has ushered in an age of dissent. The cornerstone of the Economic Recovery Advisory Board, the Volcker Rule prevents banks from making speculative investments if they are not on behalf of their customers. Upset with certain provisions of the plans, Wall Street and D.C. are up in arms. Banks are fighting tooth and nail with regulators to ensure more lenient restrictions on their investment policies. As issues are captured by regulated interests, the fatal flaw of the iron triangle construct (interest, agency, congressional sway) becomes apparent: corruption within regulatory forces. Charged with the recent majority in the House, Republicans have begun pressing a personally beneficial interpretation of the new legislation, causing a breakdown in ability to implement precise fiscal regulation.