Ex-regulatory chiefs welcome recent Volcker rule changes

Author: John Crabb | Published: 20 Nov 2019

A number of former top officials from across the gamut of US financial regulation expressed their delight at recent steps to simplify certain parts of the Volcker rule. The changes addressed amendments to rules governing proprietary trading for institutions falling under certain thresholds. Consensus was that the practice did not cause the last financial crisis and that the 900-page rule had gone too far in its attempts to curb it.

"Proprietary trading didn't cause the crisis, the Volcker rule is – in some ways unnecessarily – way over-designed. We are optimistic, we passed a piece of banking regulation that exempted many firms from the rule altogether," said Craig Phillips, previously Counselor to the Secretary of the Treasury under Steve Mnuchin, told delegates at the SIFMA Annual Conference in DC this week.

"Not as many firms as we would have liked, but it exempted a large number of banks from the rule," he...