EXCLUSIVE: Volcker on the Volcker Rule

Author: Edward Price | Published: 6 Nov 2015

Paul Volcker, former Federal Reserve chairman, has spoken exclusively to IFLR about his eponymous rule. Mr Volcker said the Volcker Rule, a part of the 2010 Dodd-Frank Act, has carried out his basic intent: banning federally-backed banks from speculative activity. But believes that more clarity is needed over the regulation.

"There are still questions about the Volcker Rule's international application and over clearing through New York City, as well as some technical questions and about defining hedging," said Mr Volcker.

That the Volcker Rule would raise international questions is no surprise. The Dodd-Frank Act is domestic legislation and the Volcker Rule has a domestic aim: banning federally-backed banks from proprietary trading. "Mr Volcker is a big fan of Glass-Steagall, the 1930s law that separated banking and securities activities in the US," said David R. Sahr, partner at Mayer Brown.

Paul Volcker
Former Federal Reserve chairman
Despite being domestic US legislation, however,...