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The German rules were watered down at French insistence.
"At no point did I hear Chairman Levitt suggest that the rules were watered down".
But those rules were watered down and circumvented by GE and many others.
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Notably, the rules are watered down for wireless Net providers like AT&T and Verizon, which would be prohibited from blocking Web sites, but not from blocking applications or services unless those applications directly compete with providers' voice and video products, like Skype.
"I have read some people say the rule was watered down," Mr. Pitt said.
"Our rule was watered down when it came under intense lobbying attack by the accounting profession who tried to deny S.E.C. funding," Mr. Levitt said.
The Volcker rule was watered down to let banks invest up to 3% of tier-one capital in hedge and private-equity funds—implying $3 billion-4 billion for the largest banks.
Rules on trading derivatives were watered down.
"These rules may be watered down.
My bet is that even the feeble Basel III rules will be watered down, country by country, through a hundred amendments and delays.
Campaigners fear that these rules will be watered down under pressure from trading partners, with potentially catastrophic results for UK consumers.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com