WASHINGTON — Five federal agencies have officially signed off on a regulation simplifying the Volcker Rule, they said Tuesday.
The reforms will result in significant changes to the proprietary trading ban first proposed by former Federal Reserve Chairman Paul Volcker and mandated in the Dodd-Frank Act.
The new
But supporters of the trading ban have said the new regulation, which will go into effect Jan. 1, goes too far in easing banks' compliance standards.
“I am concerned the final rule would materially reduce the scope of covered activity, excessively rely on firms' self-policing, and narrow the Chief Executive Officer (CEO) attestation requirement, which together could substantially weaken the Volcker rule prohibition on proprietary trading,” said Federal Reserve Board Gov. Lael Brainard, who dissented from the board's vote, in a statement Tuesday. (The Fed voted to approve the new regulation on Oct. 3, according to the central bank's website.)
The Securities and Exchange Commission and the Commodity Futures Trading Commission also signed off on changes.