Volcker rule in its ‘purest form' necessary to curb derivatives speculation
Unless the Volcker rule is implemented in its "purest form" – effectively banning speculative trading by insured commercial banks – there is a chance of financial derivatives magnifying a crisis even as the crisis of 2008 gradually fades from public memory, according to Vembar Ranganathan, a financial risk consultant and former vice-president of Citicorp's swap group.
Writing in the latest issue of Central Banking journal, Ranganathan warns that despite significant progress in reforming the
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