Rewrite of
'Volcker Rule' for banks coming soon, Treasury official says
by Joseph Lawler |
Treasury official Craig
Phillips, speaking at the Trump International Hotel to a conference of the
Institute of International Bankers, said that the Trump administration is
almost ready to begin rewriting the "Volcker Rule," a massive
undertaking that will involve five agencies. รข€©(Andrew Harrer/Bloomberg)
The Volcker Rule, a major part of the 2010 Dodd-Frank financial
reform law, is one of the top post-crisis rules that needs to be scaled back,
the administration has said for
Phillips, speaking at the Trump International Hotel to a
conference of the Institute of International Bankers, said that the
administration is almost ready to begin rewriting the bill, a massive
undertaking that will involve five agencies.
"I think there’ll be activity on that, you know, commencing
shortly," said Phillips, who is counselor to Secretary Steven Mnuchin and
previously an executive at the asset manager BlackRock.
Phillips said the Federal Reserve and the Office of the
Comptroller of the Currency were putting together a "term sheet" of
potential changes, and he's seeing "positive momentum" toward
officially proposing rule changes.
The Volcker Rule, named for former Fed Chairman Paul Volcker, was
justified as a protection against banks receiving a subsidy, via
federally-backed insurance for bank deposits, to speculative investments.
Under the rule, banks are limited in their ability to make certain
transactions using insured deposits, and are prevented from owning hedged
funds.
Last year, the Treasury proposed several changes that would make
it easier for banks to trade to meet clients' needs.
It also called for exempting smaller banks, those with under $10
billion in assets, from the rule. Legislation set for consideration in the
Senate this week would achieve that goal.
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