Volcker: Rule is no Swiss cheese

WHITE House economic adviser Paul Volcker has told US lawmakers they should not allow his proposed Volcker rule limiting risky trading by banks to become filled with holes.

“He has told several people, including some lawmakers, that he does not want the Volcker rule to look like Swiss cheese,” an associate in his office said yesterday.

The Volcker rule, named after the ex-Federal Reserve chairman, would ban risky trading by commercial banks that is unrelated to customers’ needs. It appears increasingly likely a version of the rule will become law.