WASHINGTON — Bond Dealers of America and the U.S. Chamber of Commerce warned lawmakers Thursday that the so-called Volcker Rule could restrict liquidity in the muni bond market and raise issuers’ costs.

In written testimony submitted to the House Financial Services Committee, BDA said the rule, which restricts proprietary trading by banks, should exempt all municipal bonds, including those issued by agencies and authorities such as turnpike agencies and water and sewer districts.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.