White House committed to 'Volcker rule'

The White House said Tuesday that it is committed to a proposal to clamp down on big banks and limit their proprietary trading businesses.

The administration came out earlier this year in support of a proposal, dubbed the "Volcker rule", that would limit commercial banks from also conducting proprietary trading. The proposal target big Wall Street firms, such as Goldman Sachs, that benefit from access to various government support programs and deposit insurance and that also trade their own money.

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The intent of the proposal is to better insure that commercial banks are doing business on behalf of their clients rather than for their own accounts. The proposal was initially supported by Paul Volcker, the former Federal Reserve chairman and adviser to the Obama administration.

The proposal has run into a heavy dose of uncertainty and criticism in Congress. Senate Banking Committee Chairman Sen. Chris Dodd (D-Conn.) said recently that he was concerned the additional proposal was threatening progress on a broader financial overhaul bill that has been bogged down for much of the last year.

White House Press Secretary Robert Gibbs said Tuesday that the administration remains committed to the proposal.

"We are committed to that now as we were on that day," Gibbs said. "We're not walking away from and we're not watering down that proposal one bit."

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