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Volcker: rule won’t hit UK bonds
Former Federal Reserve chairman Paul Volcker last night insisted a proposed ban on proprietary trading by US banks – named the Volcker Rule after him – would not threaten the UK government bond market. The UK has voiced concern that the Volcker rule would disrupt sovereign bond markets. But Volcker wrote in the FT: “The simple fact is that Dodd-Frank specifically permits both ‘market making’ in response to customer needs and ‘underwriting’.”