Volcker Rule May Be Scrapped
So-called Volcker Rule is said to have been cut from a proposed financial regulatory reform bill.
The so-called Volcker Rule, which would bar commercial banks from proprietary trading, is said to have been cut from a proposed financial regulatory reform bill. The rule, named after the former Federal Reserve Chairman Paul Volcker who developed it, and proposed by President Barack Obama last month, reportedly met with tough resistance from lawmakers from both parties.
The regulatory bill by the Senate Banking Committee, originally expected this week and now more likely to be introduced next week, reportedly will provide regulators with greater discretion in limiting and potentially banning risky trading at banks. Regulators would examine banks on a case-by-case basis to determine whether to allow them to engage in proprietary trading.