Barack Obama's plans to stop banks engaging in risky trading activities will not stop another banking crisis, John Varley, chief executive of Barclays, said today.Speaking before the Treasury select committee, Varley also tried to calm concerns that the crack down on proprietary trading, known as the Volcker rule, would knock Barclays' profits."This initiative [Volcker] on its own will not lead to a safer system," Varley said. "It is inconsequential. It is completely irrelevant [to Barclays]."Obama stunned markets with plans to stop banks using savers' money to take bets on markets through proprietary trading, run hedge funds or make investments in private equity through a plan devised by former Federal Reserve chairman Paul Volcker.
Barack Obama's plans to stop banks engaging in risky trading activities will not stop another banking crisis, John Varley, chief executive of Barclays, said today.
Speaking before the Treasury select committee, Varley also tried to calm concerns that the crack down on proprietary trading, known as the Volcker rule, would knock Barclays' profits.
"This initiative [Volcker] on its own will not lead to a safer system," Varley said. "It is inconsequential. It is completely irrelevant [to Barclays]."
Obama stunned markets with plans to stop banks using savers' money to take bets on markets through proprietary trading, run hedge funds or make investments in private equity through a plan devised by former Federal Reserve chairman Paul Volcker.
