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strong volcker rule

Another reason we need strong Volcker Rule

Big trading operations at large bank holding companies have embedded a large and largely uncontrolled source run risk and leverage into the banking system.  Evidence from the financial crisis has made that painfully clear.           

During the crisis there was a run on repo borrowing, which is a key source of finance for large dealers.  To prevent the run from crushing the trading operations at the large banks and investment banks, and forcing the fire sale of assets, the Federal Reserve stepped in to replace the vanishing repo lenders.