Canada responds to Volcker rule

Top Canadian moneymen concerned about potential impact on banks here.
Finance Minister Jim Flaherty and Bank of Canada governor Mark Carney have written separate letters to Washington policy makers.
They believe new bank restrictions proposed by Washington would adversely affect saving and borrowing costs north of the border.
Flaherty and Carney complai that sweeping reforms under the so-called “Volcker rule” would reach well beyond their intended scope.
And they argue that in some cases, because of the differences between the two countries, the impact could be greater in Canada, making savings through mutual funds and borrowing more expensive.
The changes, which seek to separate the traditional deposit-taking functions of banks from their more risky investment operations, are part of wider reforms being proposed to limit risk-taking by U-S banks.
It’s in response to the abuses that led to the 2008 recession.
Flaherty and Carney say they respect the intent of the law, but not how it would impact institutions outside the country.
Most Canadians banks have operations in the U-S that are so interlinked, even strictly Canadian activities could come under the broad sweep of the changes.