The Volcker Rule

26 October 2011

Andrew Tuch discusses one of the most important provisions of post-GFC regulatory reforms in the United States.

Named after the former Chairman of the Federal Reserve Paul Volcker, the so-called Volcker Rule bans large banks from engaging in proprietary trading or investing in or sponsoring hedge funds or private equity funds.

In an article for the Huffington Post, Andrew said, "Unless they're actually embedded in banks, they may have a great deal of trouble determining whether permissible or banned activities are going on."

He added

that the Dodd-Frank Act's provisions for the Volcker rule unsuccessfully tried to accomplish two aims at once: promoting financial stability and reducing conflicts of interest.

The Volcker rule's effectiveness now will depend on banks' own internal compliance, he said.

View the entire article:

Volcker Rule To Restrict Banks' Proprietary Trading Contains Loopholes, Experts Say - Huffington Post

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