AFP today joined 26 of the nation’s leading companies and
organizations in a letter to the Federal Reserve, Federal Deposit Insurance
Corporation (FDIC), Securities and Exchange Commission (SEC), Office of the
Comptroller of the Currency (OCC), and Commodities and Futures Trading
Commission (CFTC), highlighting the possible business consequences of the
proposed Volcker Rule.
“The undersigned companies and organizations, representing a
diverse range of industries, believe that the Volcker Rule will have
far-reaching negative consequences that will impede our ability to raise
capital and manage risk,” the letter states. “As such, we urge regulators to
refrain from implementing the rule in its current form, hold a roundtable with
stakeholders representing different market participants, and re-propose the Volcker
Rule to provide additional time to identify unintended consequences and craft
policies to avoid them.”
To read the letter in its entirety, click here.
As the global daily resource and advocate for over 16,000
finance and treasury professionals, AFP and its members have fully support the
idea of improving the regulations surrounding our nation’s capital markets
however. But there are concerns with the possible impact as a result of
regulations such as the Volcker Rule. Since the market has yet to feel the full
effect of many of the Dodd-Frank regulations, AFP and its members fear that the
Volcker Rule could have an adverse impact on liquidity by disrupting day-to-day
cash management practices if access to capital was limited or prohibited.
Further, it is unclear about which bank services may be eliminated or impacted
if financial institutions are forced to adjust their offerings.
"Corporate treasurers rely on the liquidity that banks offer
and fundamentally changing the function of the bank could prove problematic and
have far-reaching unintended consequences," said Jim Kaitz, president and CEO of AFP.
Here is a selection of the corporates that signed the letter:
- Abbott Laboratories
- Business Roundtable
- Caterpillar Inc
- Nissan Motor Acceptance Corporation
- Qualcomm Incorporated
- The Boeing Company
For more information, contact Brian Kalish at 301.907.2862