41 W. St. U. L. Rev. 81 (2013-2014)
The Volcker Rule: the Prohibitions, Compliance and the Cost on the Small Bank

handle is hein.journals/wsulr41 and id is 85 raw text is: 


                        The Volcker Rule:
          The Prohibitions, Compliance and the

                    Cost on the Small Bank

                             Amanda R. Huff*
    I. INTRODUCTION ......................................................... 82
    II. HISTORICAL BACKGROUND OF THE EVENTS THAT LED UP TO THE
       GREAT RECESSION ...................................................... 83
  III. THE VOLCKER  RULE ...................................................  86
       A. Who Regulates the Dodd-Frank Act, and Thus Regulates the
           V olcker  R ule  ..................................................  87
       B. What Does the Volcker Rule Require? .......................... 87
       C. What Entities are Regulated Under the Volcker Rule's Prohibition
           of Proprietary  Trading? .........................................  88
           1. The Banking Entity .  .....................................  88
           2. The Nonbank Financial Companies Supervised by the
              B oard .   ........ ...........................................  90
       D. What is Regulated Under the Volcker Rule? ..................... 90
           1. The Regulation of Banking Entities on Prohibition of
              Proprietary Trading ........................................  91
           2. The Regulation of Banking Entities on the Prohibition to
              Acquire or Retain Any Equity, Partnership or Other
              Ownership Interest in or Sponsor a Hedge Fund or .......... 91
              a Private Equity  Fund ....... ..............................  000
           3. The Regulation of Nonbank Financial Companies Supervised
              by the Board: Additional Capital Requirements and
              Q uantitative  Lim its .........................................  92
          4. Permitted Activities that Banking Entities May Still Engage
              in ....... .......... .... ... ... ....... .......... . ...... . . ... . 9 2
           5. The Effective Date and Compliance Timeline of the Volcker
              R u le  .......................................................  9 5
           6. The Volcker Rule Requirements ............................ 96
              a. The Compliance Program Requirements .................   97
              b. Requirements of the Compliance Program Based on the
                  Amount of Trading and Fund Activities of the Banking
                  E ntity  .................................................  97
  IV. THE VOLCKER RULE'S IMPACT ON CALIFORNIA: THE IMPACT ON
       SMALLER ENTITIES AND THE COST OF THE VOLCKER RULE'S
       REGULATIONS AND REQUIREMENTS ..................................... 99

* Amanda R. Huff is a student at Western State College of Law; I would like to thank Professor David
Groshoff, my faculty advisor, for his continuing advisement, guidance and encouragement throughout the
process of writing this article.

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