Saturday, May 12, 2012

U.S. Senate Hearing May Test Volcker Rule Concepts

Author: David Schwartz
In a letter to Senate Banking Committee Chairman Tim Johnson (D-SD), Senator Bob Corker (R-TN), a key member of the Committee, has called for immediate investigation into the details of the JPMorgan Chase & Co. trading losses. Senator Corker wants the committee to examine if the trades in question were bona fide hedging transactions or poorly managed proprietary trades, and wants to explore whether US taxpayers are fully protected from losses at major financial institutions. In addition, Senators Levin (D-MI) and Merkley (D-OR), authors of the Dodd-Frank Act's Volker Rule, have issued statements urging rapid adoption of Volker Rule regulations prohibiting hedge fund investments by large financial institutions being disguised as risk mitigation or market making.

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Thursday, April 26, 2012

Fed Sets Volcker Rule Phase-In

Author: David Schwartz
On April 19, the Federal Reserve Board clarified that an entity covered by Volcker Rule will have the full two-year period provided by the statute to conform its activities and investments. The guidance issued by the Fed also assures covered entities and institutions that no activities or investments will be prohibited by the Volcker Rule until the end of the implementation period, currently scheduled to occur on July 21, 2014.
 
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Friday, March 30, 2012

Senators Introduce Legislation to Delay Volcker Rule

Author: David Schwartz

A bi-partisan group of six Senators introduced a bill on March 22 that would postpone the implementation of the Volcker Rule set for on July 2.  Instead, the S. 2223 links the effective date of the Volker Rule to the date regulators finish drafting their Volker Rule regulations. Based on their concerns that Federal Reserve Chairman Ben Bernanke and others have said the regulations implementing the rule may not be completed by the current deadline, Sens. Mike Crapo (R-ID), Mark Warner (D-VA), Kay Hagan (D-NC), Tom Carper (D-DE), Pat Toomey (R-PA), and Bob Corker (R-TN) proposed the legislation. 

 
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Thursday, February 9, 2012

UK Chancellor of the Exchequer Voices Concerns Over Volcker Rules

Author: David Schwartz

George Osborne, the UK's Chancellor of the Exchequer, voiced concerns about the potential negative effects the proposed Volker Rule provisions may have on the liquidity of global funding markets and particularly non-US sovereign debt markets.  Osborne communicated these concerns via a January 23, 2012 letter to Fed Chairman Ben Bernanke.

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Monday, December 26, 2011

Regulators Extend Comment Period for Volcker Rule Implementation

Author: David Schwartz

Treasury, the Fed, the FDIC, and the SEC have announced an extension of the comment period on the proposed regulations implementing the Dodd-Frank Act's Volcker Rule provisions.  Originally set to expire on January 13, 2012, the comment period has been extended a month until February 13, 2012.

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