Financial regulators will soon issue a proposal to carry out provisions of the Volcker Rule as part of the Dodd-Frank Act, which will cause many American jobs to be moved overseas, according to financial experts.
Dodd-Frank is imposing several expensive regulations on U.S.-based operations, although in many cases these rules do not apply to foreign operations of the very same bank, according to OpenMarket.org. Financial experts predict that this could cause money management responsibilities to be handed to people overseas.
The Volcker Rule seeks to regulate types of offshore trading. In the past, the rule has led to U.S. banks, including Goldman Sachs Group Inc., to end their proprietary-trading operations.
Depending on how regulators implement the Volcker Rule, overseas banks have said that a strict interpretation may force them to fire or relocate people working in the United States who deal with proprietary trading, according to OpenMarket.org.
“There is no question that we would lose jobs,” Wayne Abernathy, the vice president of the American Bankers Association in Washington, said, OpenMarket.org reports. “A lot of what the banks have been doing in recent years to diversify their services are activities that can easily be done by foreign competitors.”