The Volcker Rule provision of the 2010 Dodd-Frank Act is preventing banks from providing a valuable public service, says Goldman Sachs CEO Lloyd Blankfein.
Speaking in an interview with CNBC, Blankfein said banks “should be able to be principals because market-making is a very important public function of companies like ours…if we don’t do that, the drop in liquidity will not allow other people and industries and investors to accomplish their objectives, which are beneficial to the financial markets. There should be more flexibility.”
The comments come as US Treasury Secretary Steven Mnuchin, former partner at Goldman Sachs, has been tasked with examining which banking rules should be eliminated.