If the Volcker Rule Forces Other Countries to Subsidize Their Banks, Why Should We Care?

An NYT piece on the Volcker rule raised the possibility that if the rules are too tight then some trading may go overseas. It would have been worth reminding readers that rule would only limit the activity of banks that hold government insured deposits. Independent investment banks, which do not have government insured deposits, would be entirely free to do whatever trading activity they liked. 

If the rules are drawn in a way that are too restrictive then we would expect that trading...