Ottawa, February 13, 2012
The Honourable Jim Flaherty, Minister of Finance, today sent a letter to U.S. Secretary of the Treasury Timothy Geithner expressing Canada’s concerns about the proposed Volcker Rule.
Proposed on October 11, 2011, the draft rule places restrictions on proprietary trading by all financial institutions that do business in the U.S., including Canadian firms.
The letter notes that while Canada supports the underlying policy objective of the Volcker Rule, the rule as written has an unprecedented extraterritorial reach that could adversely affect Canadian financial institutions and markets and conflict with Canada’s own approach to financial sector regulation.
For a fourth year in a row, Canada's banking system was recognized as the world's soundest by the World Economic Forum. Canada benefits from an effective financial sector regulatory and supervisory framework that gives strong protection to Canadian consumers and taxpayers.
A number of countries, including the United Kingdom and Japan, have voiced similar concerns about the draft rule.
For further information, media may contact:
Mary Ann Dewey-Plante
Office of the Minister of Finance
Department of Finance
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