Pressure continues to mount on regulators to re-write the Volcker rule. On Monday, SEC Commissioner Daniel Gallagher said regulators should "go back to the drawing board" and revise the proposed ban on proprietary trading. "Even a quick review of the many substantial comment letters the commission received reveals widespread fears regarding the effect of the proposed rules on the proper functioning of global markets and the competitiveness of the U.S. financial industry might -- fears that I share," Gallagher said in a speech at an Institute of International Bankers Institute conference in Washington, according to a Bloomberg report. Regulators have received over 15,000 comment letters on the Volcker rule from everyone ranging from banks to hedge funds to sovereign governments.
Interest rates for everything from mortgages to credit cards could be overhauled as the result of an international investigation into banks' abuse of the system. The London Interbank Offered Rate (Libor) -- which serves as a reference rate for global banks -- could be reworked because of an ongoing investigation by U.S., U.K. and Canadian authorities, according to an article in the Financial Times. "As part of the normal reviewing processes of Libor, a number of contributing banks met today to consider future regulatory and market developments, such as the incoming liquidity rules, relevant to the parameters that Libor measure," the FT quoted British Bankers Association as saying. The BBA acts a the ruling body over Libor. Over the past regulators said they were investigating large banks such as JPMorgan Chase ( JPM) and Duetsche Bank ( DB) over charges that traders pushed Libor rates artificially low in order to lower capital requirements of their employers. --Written by Shanthi Bharatwaj in New York