banking

Volcker rule: Why it matters to consumers

Cost of transactions
Slide 5 of 5
Back
Cost of transactions

The impact on transaction costs resulting from the Volcker rule is unclear. While the Volcker rule could make financial transactions more affordable to individuals by making banks more like utilities, some experts believe it could drive costs up and reduce liquidity in the system.

Tom Quaadman, vice president of the U.S. Chamber of Commerce's Center for Capital Markets Competitiveness, says it makes U.S. firms less competitive with their European and Asian counterparts who aren't subject to the rule. If investors, including Americans, move their money to overseas banks, there will be less liquidity here.

"It places American financial service firms at a disadvantage," Quaadman says.


Slide 5 of 5
Back

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

Ask Dr. Don

Have a savings bond tax problem?

Dear Dr. Don, I have a number of savings bonds that will stop earning interest in the next three to four years, months apart from each other. I retired in 2013. Is there any way for me to legally avoid paying the income... Read more

advertisement
Partner Center
advertisement

Connect with us