THE VOLKER RULE ~ READ .. *HEREVolcker Rule “embraces the spirit of the Glass-Steagall Act’s separation of ‘commercial’ from ‘investment’ banking by restoring a protective barrier around our critical financial infrastructure.”
Rule is intended to “prohibit or restrict certain types of financial activity … that are high-risk or which create significant conflicts of interest.”
. Intent of prohibition is to:
. Limit threats to safety and soundness
. Limit threats to financial stability
. Eliminate any economic subsidy to high-risk activities that is provided by access to lower-cost capital because of participation in the regulatory safety net Senate Banking Committee (April 2010)
Chronology—History
. January 2009: Group of 30 Report
. Proprietary trading a major reason for the financial crisis
. Recommends prohibition on proprietary trading by systemically important institutions
. June 2009: Administration proposals; no Volcker-type provisions
. December 2009: H.R. 4173 passed; no Volcker-type provisions
. January 2010: Obama Administration announces support for Rule
. April 2010: Merkley-Levin Amendment
. May 2010: S. 3217, passed, with amendment
. June 2010: Conference committee adds “de minimis” exception to private equity/hedge fund prohibition
. July 21, 2010: Dodd-Frank Act signed into law
Chronology—Post-Enactment
. November 2010: FRB proposes rule on conformance periods
. Jan. 2011: FSOC publishes required study
. Feb. 2011: FRB releases final rule on conformance periods
Still to come:
. 3rd Quarter 2011: Interagency proposal on substance of Volcker rule
. 4th Quarter 2011: Final regulations on Volcker Rule (Oct. 21 is Dodd-Frank requirement)
. July 21, 2012: Volcker Rule to take effect—with 2-year conformance period
. July 21, 2014: Across-the-board conformance period ends, but extensions are available
Related Articles ...
Link .. A Powerful British Faction has Aligned with LaRouche…return to Glass-Steagall and a system of fixed-exchange-rate sovereign currencies ... .. and .. Link .. *2009 ~ First Steps in the "LaRouche Plan" ~ Immediate Measures For U.S. Economic Survival ...
and .. Link .. *The Volker Rule To Take Effect In July .. White House Steps Up Push to Toughen Rules on Banks ... ..
and .. Link *White House : JP Morgan Loss Reinforces Need For Strict Wall Street Oversight (Here we go .. Problem, Reaction Solution) .. ..
and Link .. *U.S. Banking Reform ~ The "Volcker Rule" ... Dodd-Frank financial-overhaul law: the "Volcker Rule" ... ..
and Link .. *US Congress nears deal on bank trading crackdown needed to approve historic Wall Street reform ... and .. Link.. *JPMorgan Chase halting proprietary trading ...
