Simon Johnson points to some data about the number of meetings the Fed has had on the Volcker Rule with various interested parties. He notes that Fed officials met with five of the big banks at least nine times each (and 16 for JPMorgan Chase). Meanwhile it has met with those supporting a strong Volcker rule only a handful of times.
On the plus side, at least we know about these meetings. But that’s about all we can say that is positive. It certainly seems from the outside that this is a clear cut case of regulatory capture in which the Fed sees the world through the eyes of the banks instead of through the eyes of the consumers and voters.
We really need to go back to a world in which banking is boring and much much much less profitable.