New banking regulations could limit access to capital for some business in the near future, according to Sen. Bob Corker (R-Tenn.).
Speaking out against the Volcker rule that will be implemented as a new Dodd-Frank regulation, Corker said that it could cut credit for many borrowers by cutting off some forms of lending.
“When you look at credit availability, I think within the next 60 days you are going to hear a hue and cry from across the country of mainstream manufacturing entities because of some of these rules,” Corker said,
TimesFreePress.com reports. “Here we are in the height of the time when people are having trouble getting credit, this Volcker rule comes out. People think it’s about traders at banks making money gambling at banks. But at the end of the day, what it also affects credit throughout our country.”
The Volcker rule is aimed at preventing banks from making short term trades for their own accounts and will stop them from owning or sponsoring hedge funds and private-equity funds.
Corker said that it is just another example of increasingly burdensome federal financial regulations.
“It’s unbelievably frustrating to know that these policies are going to do such damage to the economy and to the things that people care most about in the economy,” Corker said, according to TimesFreePress.com.