Posted on 05/30/2018 7:33:22 PM PDT by caww
The Federal Reserve voted Wednesday to seek input on a proposal to simplify the Volcker Rule, a provision of the post-financial crisis reform law that blocked banks from trading on their own accounts.
The proposed alterations would tailor compliance based on the size of a firm's trading assets, benefiting smaller institutions; clarify that firms trading within internal risk limits are conducting permissible market-making or underwriting activity; and limit the rule's impact on foreign activities of foreign banks.
The Fed will accept comments for the next two months, a key step toward final adoption and implementation of the changes drafted by the industry's five government oversight agencies, which also include the Commodity Futures Trading Commission, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Securities and Exchange Commission.
"This is obviously a large and complicated proposal that lawyers will comb over for months as the banks offer up their suggestions for what works and what falls short in the plan."
David Hirschmann, president of the U.S. Chamber of Commerce's Center for Capital Markets Competitiveness, said his group looks forward to reviewing the proposal.
(Excerpt) Read more at washingtonexaminer.com ...
Good. Long overdue.
Bad idea. Banks are banks and investment banks underwrite equity issues.
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