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No exception to the Volcker Rule

Foreign governments and central banks are irked that US Treasuries will be exempt from the Volcker rule's ban on banks taking proprietary positions in government securities.

What's good for the goose should be good for the gander. That is the line from foreign governments and central banks, upset by the Volcker rule's ban on banks taking proprietary positions in government securities.

Their fear: it will reduce liquidity. Their particular gripe: that US Treasuries will be exempt, an implicit acknowledgement that Washington believes this risk is real.

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