We've noted before that Paul Volcker has some issues with the manner in which the Volcker Rule was being watered down. He's now talking openly about it, telling the New York Times that the effort merits an ordinary B, not even a B plus. As for the Volcker Rule, he proposed it initially as a way to prevent commercial banks from engaging in risky proprietary trading. It was indeed watered down, allowing a long transition time and allowing for many decisions to be made in the future in some cases. Some think it has been rendered toothless. We'll have to see whether the likes of Goldman Sachs (NYSE: GS) really have to curtail principal investing.

In any case, Volcker is resigned to the newly worded law. It boils down to how "aggressively and intelligently it is implemented." He notes that the new, 10-member regulatory council authorized by the bill will be tasked with some big decisions. "It is not just a question of defining what needs to be done, but carrying it out in practice, day by day, bank by bank." All in all, the lobbyists earned their pay on this one. They succeeded in essentially deferring the issue. We'll see how this turns out.

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