From: Washington Post
By Zachary A. Goldfarb and Howard Schneider
new federal rule aimed at limiting the freewheeling trading of banks is prompting protests from local and foreign governments alike, which warn it could compromise their ability to borrow money needed to pay for public projects and operations.
States and localities — including in the Washington area — say the new regulation, known as the Volcker Rule, could make it more expensive for them to raise money from investors to pay, for instance, for environmental clean up and housing assistance. European governments warn the regulation could further aggravate their debt crisis, which is already roiling global financial markets.