Bloomberg News

Volcker Rule Is ‘Credit Negative’ for U.S. Banks, Moody’s Says

October 10, 2011

Oct. 10 (Bloomberg) -- The so-called “Volcker Rule” proposal prohibiting short-term proprietary trading may hurt investors in bank bonds because of its complex restrictions on market making and hedging, Moody’s Investors Service said.

“It is credit negative for bondholders of Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, and Morgan Stanley, all of which have substantial market-making operations,” Moody’s said in its Weekly Credit Outlook.

To contact the reporter on this story: Wes Goodman in Singapore at wgoodman@bloomberg.net

To contact the editor responsible for this story: Benjamin Purvis at bpurvis@bloomberg.net


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