“In a recent BankThink post challenging the rationale behind the Volcker rule, Richard E. Farley suggests that not a single bank collapsed because of proprietary trading in the last crisis.”

“Preposterous.”

“Responding to Paul Volcker’s public comment letter on the proposal named after him, Farley complains, ‘What he does not tell us, because he cannot, is the name of a single bank that went under and required taxpayer support because of proprietary trading gone bad.'”

“Paul Volcker is a busy man, but I can name at least four institutions that effectively ‘went under’ and required taxpayer “support because of proprietary trading gone bad: Citigroup, Bank of America, Morgan Stanley, and Royal Bank of Scotland.”

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