Volcker day one: clarity still needed

Author: Zoe Thomas | Published: 20 Jul 2015

The new regime comes into effect Tuesday. Banks have had 18 months to prepare, but uncertainties remain around several aspects of the rule

Under the rule banks are no longer allowed to engage in proprietary trading, except for hedging, market making, trading of government securities, operating insurance company activities, and acting as agents, brokers or custodians. With these exceptions, many supporters of the rule argue banks can still get away with too much risky activity.

Most financial institutions subject to the rule have dedicated significant time and effort into their programs and shifting business lines. Many though, are concerned about a lack of clarity in some areas of the regulation. Though they have tried to comply, it will be hard to determine whether they are compliant until after the first review.

"We are going to be seeing over the examination cycle the tightening of the screws,"...


 

 

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