About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 1 (December 10, 2019)

handle is hein.crs/govbivy0001 and id is 1 raw text is: Resarh Servi kM- Revising the Volcker Rule: Section 203 and Section 204 of the Economic Growth, Regulatory Relief, and Consumer Protection Act December 10, 2019 When Congress enacted the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010, Section 619, otherwise known as the Volcker Rule, proved particularly consequential. Named after former Federal Reserve Chairman Paul Volcker, who had long criticized certain banking practices that he felt were at odds with conventional banking principles, the Volcker Rule prohibits banks and affiliates from, among other things, (1) engaging in proprietary trading, and (2) owning or sponsoring hedge funds and private equity funds. These prohibitions are subject to several exemptions and restrictions, including those relating to underwriting, market making, and risk-mitigating hedging activities. Defenders of the Rule argue that it keeps banks from engaging in risky trading activities. Critics have argued that the Rule is overly complex, ambiguous, and may decrease market liquidity. In 2018, Congress addressed some of this criticism by amending the Volcker Rule as part of a larger package of financial reforms known as the Economic Growth. Regulatory Relief and Consmner Protection Act (EGRRCPA). This Legal Sidebar is the first in a series to examine revisions to the Volcker Rule. It discusses rulemaking by five financial regulatory agencies (the Agencies)-the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Federal Reserve), the Federal Deposit Insurance Corporation (FDIC), the Commodity Futures Trading Commission (CFTC), and the Securities and Exchange Commission (SEC)-to implement the EGRRCPA's Volcker Rule revisions. These revisions include Section 203, which exempts so-called community banks from Volcker Rule restrictions, and Section 204, which modifies the Volcker Rule's restriction on name sharing among banking entities, hedge funds, and private equity funds. This Sidebar proceeds in two parts. First, it gives background on the Agencies' rulemakings. Second, it analyzes related legal issues. Specifically, the Agencies' interpretations of Sections 203 and 204 are generally in keeping with the common view regarding the scope of the provisions. Nonetheless, Congress could amend revisit and revise the Volker Rule in the event that it no longer believes the Rule is the best approach or does not believe the Rule is appropriately implemented by the Agencies. Congressional Research Service https://crsreports.congress.gov LSB10382 CRS Lega Sidebw Prepaed for Membeivs and cornmnittees o4 C- --q .. . . .. . . .. . .. . . .. ..-------------------------------------------------------------------------------------------------------------------------------------------------- -------------

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most