Mayra Rodriguez Valladares, Managing Principal of MRV Associates and a former proprietary trading desk analyst for JPMorgan says Volcker “will be one of the biggest wastes of time.” However, she is “very encouraged” by other requirements of Dodd-Frank, including the strengthening of capital ratios and liquidity, as well as the requirement for orderly liquidation plans.
“What was the real problem with Lehman? It was leverage and liquidity,” she says.
Rodriguez Valladares is skeptical that bank regulators will be able to enforce the Volcker Rule effectively and doesn’t believe it will add transparency for investors. For instance, investors aren’t likely to get further insight into bank balance sheets, or granular details such as the level of activity in a bank’s trading book, or the jurisdiction where trades are booked in.