Big Banks Lobbied Against Stricter Regulation -- And Lost
Regulators approved the Volcker rule
yesterday, a central piece of the Dodd-Frank bill that limits the
ability of banks to engage in high-risk trading. Their decision comes in
spite of heavy lobbying from the rule's main opponents: the banks
themselves.The American Bankers Association, which represents the interests of banks of all sizes, spent nearly $6.5 million on lobbying in the first nine months of 2013, with much of that money going to lobbying on behalf of "Dodd-Frank issues." Wells Fargo and Citigroup each spent just over $4 million, while the Independent Community Bankers of America, another organization that represents banks, spent nearly $3.6 million. All three lobbied on the Dodd-Frank legislation.
Bank of America, meanwhile, spent just under $2 million on the Volcker rule and other issues, while JPMorgan Chase spent more than $4 million and listed "implementation and interpretation of the Volcker Rule" as one of its concerns.
The final rule is seen as a defeat for the commercial banking industry, which has already voiced its unhappiness with the decision.