ansia Occupy the SEC Comment Letter onthe Volcker Rule ‘Scubd Upload a Document ‘Search Books, Present! Explore sareh Docum Fiotion Health & Medicine Brochwes/Catabogs | ‘© How-To GuideyMarnals (© Maguznes/Newspapers ‘© BecipeyMerus fonprofits © My Documents © My Collections © My Shel? © Messages won sribd.comidoci®1484886/Occupy-tne-SEC-Comment-Loteron-the-Voleker-Ruleansia (Occupy the SEC Comment Letter onthe Volcker Rule Occupy the SEC http: //innw.occupythesec.org Mts 4656S Fy ily sy cs ius Wes Wes Neve hyy yF ev iy yLus yH Sh i ya vil Ey ydbt | 433Ni yy-diLt os -TmUssss¢ os -Tasss7 cs WP yty woos ru iss Eu Wyo yH yw Nwysty oT sw 5 cow Hoy yyw 04; 1 yy-d dT SHLI yy-i 1 os AmssTsC os) TAMS3SIC Re: Prohibitions and Restrictions on Proprietary Trading and Certain Interests in and Relationships With, Hedge Funds and Private Equity Funds (RIN 1557-AD44; RIN 7100 AD 82; RIN 3064-ADHS; RIN 3235-AL07) Iwi svesw D cm yilit we oy yy yy yet oy wy s syuy DE yay, wg oh ys )dgh-g why, yy fw Me" yt ws Bw) yBu st em yi 5 www yu csv sus ys wary wy sy yym skys y kus yyvol Dyyoy sy #9 848 gus uy nye ss oye usw mesvw sy ss by uw yat> y syts wosvy yy sm ossy yw ww wy Ng layl) ON ves: Navthy EAM) vd oSSMQayy sy agh og oR yt Laks bi aegjeded the Volcker Rule. Our experiences working inside the financial industry have informed our answers tothe questions proposed, making us well-suited to understand and anticipate how the proposed implementation, should stand, wil effet ue and the rest ofthe general public. ‘The United Stats aspires to democracy, bat no trae democracy is altinable when the process Actermined by economic power. Accordingly, Occupy the SEC is deighted to participate the public comment process forthe implementation of Section 619 ofthe Dodd-Frank Act by the won sribd.comidoci® 1484886/Occupy-tne-SEC-Comment-Loteron-the-Voleker-Rule 27255ansia Occupy the SEC Comment Letter onthe Volcker Rule SP, Pease Kesesve, ULL ana FT he Agen). Ms county's YOvETINE Praepies ot ‘ransperenc and due process mandate that any rales implemented by our regulators comport, ‘with the democraielly-clested lepslature's mention fe protect he poople fom the widespread ‘banking abuses and excesses ofthe recent past. We believe the Volker Rule s important to the futur of the banking industry and, f strongly enforced, wil belp move our fsancial system ina ‘more fur, transparent, ond sustainable direton. Prohibiting Panking entities from eagaging is proprietary trading and banning ther sponsorship of coveres funds are Key elements to ‘eglatng the financial system and giving ore tothe DodTrask Act. tits ere the Volcker Rule seeks to make sure that is banking entity fails, it doesnot bring down the whole system with. We appreciate the momentous challenges thal the Agencies continue to Fae in effectively implementing the Ral, and we present these comments oasis them in her ask, ‘This letter consis a summary of our positions. Annexure A hereto contains more detailed answers o 244 ofthe 395 questions asked by the Agencies. Any questions tal remain ‘unanswered in Annexure 4 shouldbe interpreted bythe Agencies ss out suggestion tat the applicable provision in the Proposed Rule remain changed. Annexure B consis «proposes markup of varios sections ofthe Text ofthe Proposed Rule, and Anexure C contains 2 proposed markup ofthe Commentary Regarding Téntiication of Permitted Marke: Making Related Actvis, which appeared as Appendix B tothe Proposed Re * osepy Wall Steet Detarstion fhe Oxon of New Yor Cty (2011, Iuptean yopatenrceocaaon occupy the SEC netps //wmw-occupythesee.org 1 INTRODUCTORY COMMENTS Proprietary trang by large-scale banks was «principal cause ofthe resent finan ers," end, if tet uncbecked, it hs the potential to cause even worse cis inthe face, Inthe words of & ‘aking inser, Michael Maden, former Lehman Brothers executive Proprietary trading played a big role in manufoctuing the CDOs and other instruments that were at he heart ofthe Hnancial crisis... If firms weren't able tobuy up the parts of hese dels hat wouldnt .. the ame would have stopped a fot sooner: “The interconnectdness of banks under the shadow banking system had he effect of magnifying ‘one benk's proprietary trading losses (eg, Lehman Brothers) and transfertiag them actors the Imatket as awhole. Lobbyists’ exhortations aotwitsanding, proprietary trading by government ‘ackstopped banks is a fundamentally speculative and nsky phenomenon that must be ‘siroanscrbed Dring the legisatv proces te Volar ale was wosilyenfsbed bythe ation of thuneous loophole: engerplon. The bling ety eet owas farce on {Congres and succeeded tng thee dep he east fares tat tok polis have produced and continue to produce.’ Nevertheless, the Volcker Rule, m its current statutory {S55 ead acess Mile Eps tae aly neat Reding tua vr hee Ieee prpms, We encourage he Agen (sand arog apa te food of deregulatory ovat hve sn loti he come hp se win. serio. com ot814648860ceupy ne SEC-Commont-Lotor-onahe-Volesor- Rule 255