"Volcker's biggest objective is to make sure that risk-taking, especially proprietary risk taking done in proprietary institutions does not fall back on the taxpayer as the ultimate supporter," Blinder said. "And he is 100 percent right about that."
Whatever happens, Volcker's Rule has made an impact already, says Donaldson.
"It's easier to pass reform lite," he said. "It's not so easy to go to another level. That is what I think the so-called Volcker Rule has done. I think it opens up a discussion that hasn't been there before and I think it needs to be discussed."
If the Volcker Rule is shot down, the U.S. Congress could face an unusual challenge.
"I tell you sure as I am sitting here, that if banking institutions are protected by the taxpayer and they are given free rein to speculate, I may not live long enough to see the crisis," Volcker told Congress last month. "But my soul is going to come back and haunt you."The big-boy-banks don't like the idea at all. I don't blame them; if you can get a sucker to pay up when you lose a bet, the party keeps going on.
Chris Dodd is writing his own bill, which will not likely include the Volcker Rule. But as Ritholtz (and I) told you, Dodd has been in the pockets of the big-boy-bankers for