Columnist James Colby explains the symbiotic relationship between Wall Street and Main Street in regard to municipal bonds. Colby argues that the proposed Volcker rule could have a devastating effect on some municipal securities. "[T]housands of revenue muni bonds that depend on dealer liquidity are not exempt, and are vulnerable to the Rule's unintended consequences," Colby writes. SIFMA offered several ideas to federal regulators to better implement the Volcker rule, all in compliance with congressional intent but without damaging the liquidity and resiliency of U.S. capital markets.
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