Mnuchin: I Support the Volcker Rule

The video discusses the incompatibility of proprietary trading with banks that have FDIC insurance. It highlights a Federal Reserve report indicating that the Volcker Rule has restricted liquidity in various markets. The Federal Reserve is worried that the rule's interpretation prevents banks from providing sufficient liquidity to customers.

What is the significance of FDIC insurance in the context of the discussion?

What does the Federal Reserve believe about banks' ability to create liquidity?