Volcker Rule For Banks Ready For Regulator Vote

US regulators are set to vote on the Volcker rule, a measure designed to place restrictions on the finance industry in the wake of the 2008-2009 financial collapse.

Named after former Federal Reserve chairman Paul Volcker, it bans banks from using their own profits to invest.

It is considered the centrepiece of the 2010 banking reform legislation known as Dodd-Frank.

Five separate regulatory agencies must approve the rule.

Three of those agencies will hold public votes on 10 December, including the Federal Reserve, the Commodity Futures Trading Commission and the Federal Deposit Insurance Corp.

The other two regulators, the Office of the Comptroller of the Currency and the Securities and Exchange Commission, will also consider the measure in private later.

Although the Volcker rule was passed as part of the Dodd-Frank legislation in 2010, it has faced difficulties in implementation, mostly due to opposition from the banking industry.

Even if passed, the measure is not expected to be implemented until 2015.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza