This article needs to be updated. Please help update this article to reflect recent events or newly available information.(August 2019)
Paul Volcker
The Volcker Rule is section 619[1] of the Dodd–Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. § 1851). The rule was originally proposed by American economist and former United States Federal Reserve Chairman Paul Volcker in 2010 to restrict United States banks from making certain kinds of speculative investments that do not benefit their customers.[2] It was not implemented until July 2015.
Volcker argued that such speculative activity played a key role in the 2007–2008 financial crisis. The rule is often referred to as a ban on proprietary trading by commercial banks, whereby deposits are used to trade on the bank's own accounts, although a number of exceptions to this ban were included in the Dodd–Frank law.[3][4]
The rule's provisions were scheduled to be implemented as part of the Dodd–Frank Act on July 21, 2010,[5] with preceding ramifications,[6] but were delayed. On December 10, 2013, the necessary agencies approved regulations implementing the rule, which were scheduled to go into effect April 1, 2014.[7]
On January 14, 2014, after a lawsuit by community banks over provisions concerning specialized securities, revised final regulations were adopted.[8] The rule came into effect on July 21, 2015.[9] On August 11, 2016, several large banks requested a 5-year delay to exit illiquid investments.[10]
On January 30, 2020, the Federal Reserve put forward a proposal to roll back some provisions of the rule, specifically rules that limit bank investment in venture capital and securitized loans.[11] These changes were adopted on June 25, 2020.[12]
^"Notice Regarding Volcker Rule". U.S. Securities and Exchange Commission. 8 February 2011. Archived from the original on 28 December 2011. Retrieved 16 December 2013.
^David Cho, and Binyamin Appelbaum (22 January 2010). "Obama's 'Volcker Rule' shifts power away from Geithner". The Washington Post. Retrieved 13 February 2010.
^"Prop Trading and the Volcker Rule". Retrieved 2011-09-28.
^Floyd Norris (October 13, 2011). "Bank Rules That Serve Two Masters". New York Times. Retrieved 2011-10-14.
^Clarke & Alper, Dave & Alexandra (October 11, 2011), "U.S. reveals Volcker rule's murky ban on Wall St. bets", Reuters, retrieved 2011-10-11
^Baer, Justin; Steinberg, Julie (10 December 2013). "Regulators Vote to Back Volcker Rule". Wall Street Journal. Retrieved 10 December 2013.
^Goldstein, Matthew (14 January 2014). "Regulators Ease Volcker Rule Provision on Smaller Banks". DealBook. The New York Times.
^McLannahan, Ben (October 2, 2015). "Old engine of Wall Street is sputtering". Financial Times.
^"Exclusive: Wall St. banks ask Fed for five more years to comply with Volcker rule". Reuters. Archived from the original on 2023-04-04.
^Cheung, Brian (January 30, 2020). "Fed to pare back 'Volcker rule' to expand bank investment in venture capital, securitized loans". Yahoo Finance. Retrieved 2020-01-31.
^"Banks Get Easier Volcker Rule and $40 Billion Break on Swaps". Bloomberg. June 25, 2020. Retrieved June 25, 2020.
The VolckerRule is section 619 of the Dodd–Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. § 1851). The rule was originally proposed...
Paul Adolph Volcker Jr. (September 5, 1927 – December 8, 2019) was an American economist who served as the 12th chairman of the Federal Reserve from 1979...
of at least $2 billion through "egregious mistakes" in trading. The VolckerRule, part of the Dodd–Frank Wall Street Reform and Consumer Protection Act...
epithet the "London Whale." Dimon commented on the VolckerRule in January 2012: "Part of the VolckerRule I agreed with, which is no prop trading. But market...
counterparty, thus profiting from the bid–offer spread. In 2011, the VolckerRule aimed to limit flow trading businesses from taking proprietary bets....
March 7, 2021. Phillips, Matt (March 4, 2010). "First the VolckerRule, Now the Eddie Murphy Rule!". The Wall Street Journal. Archived from the original...
"VolckerRule Could be Delayed – Again". Wall Street Journal. Retrieved March 1, 2013. "A Roadmap of the Shadow Banks, plus targeting the VolckerRule"...
exchanges across the US. Another part of the Dodd-Frank Act established the VolckerRule, which deals with speculative investments of banks that do not benefit...
its core business. nQuant, was considered a non-core business and the VolckerRule meant it could no longer perform proprietary trading activities under...
Reform and Consumer Protection Act of 2010 (Dodd–Frank Act of 2010), the VolckerRule asserts some institutional separation of investment banking services...
Dodd–Frank Act included the Merkley–Levin amendment to implement the VolckerRule. The rule is premised on the notion that banks should not make risky, speculative...
Principal Strategies. One of the main reasons for the buyout was the VolckerRule which put strict limits on how much banks can invest in alternative investments...
opposed to separate divisions within firms. His recommendation – the VolckerRule – would apply to synthetic securitization. The Financial Crisis Inquiry...
attention in 2012 when they submitted a 325-page comment letter on the VolckerRule portion of Dodd Frank. Another offshoot of the Occupy Movement, calling...
relief" from postcrisis rules under the new leadership. In that context, the article referenced Dodd-Frank, The VolckerRule, the Community Reinvestment...
March 2, 2021. Phillips, Matt (March 4, 2010). "First the VolckerRule, Now the Eddie Murphy Rule!". Wall Street Journal. Byrne, Suzy (May 1, 2017). "When...
group first gained attention after tackling a response to the proposed VolckerRule, part of the Dodd-Frank Act of 2010, that would severely limit proprietary...
substantial data on the funds' activities and positions. Under the "VolckerRule", regulators are also required to implement regulations for banks, their...
"exempt existing collateralized loan obligations from the so-called "VolckerRule," which bars banks from making risky trades with their own money and...
system safer and must be preserved. However, he also stated that the VolckerRule should be re-written to exclude smaller banks. On November 2, 2017, President...
Global Information
