Fed Sets Time Period For Volcker Rule

The Federal Reserve has set a period of two years for banks to conform their activities and investments to the Volcker rule, The Wall Street Journal reports. The rule is designed to discourage banks from engaging in risky trades with their own money.

The rule also allows for extensions, including the sale of illiquid assets. Financial regulators will have nine months after the completion of the study to apply the rules, which becomes effective in one year or on July 21, 2012, whichever is earlier, adds Bloomberg.

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