This sort of "warehousing" would not be possible under the Volcker Rule, it appears.
His recommendation has been called the Volcker Rule.
The Volcker Rule passed on 21 January 2010 states that these investments played a key role in the financial crisis of 2007-2010.
The Volcker Rule permits "market making" and other "dealer" activities in non-government securities as services for customers.
The Volcker Rule will prohibit such "proprietary trading" of non-government securities.
The Volcker Rule will affect the ability of bank affiliates to make such investments.
Regulators have released a draft proposal of the Volcker Rule for public comment.
"If the Volcker Rule goes through as written and interpreted today, liquidity in all markets will dry up."
In 2011 the Volcker Rule aimed to address the issue of flow trading.
Because of financial regulations like Volcker Rule in particular, major banks have spun off their prop trading desks or shut them down all together.