Publications

July 14, 2010

The Volcker Rule

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On June 25, 2010, a House-Senate conference committee approved the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which includes a modified version of the so-called “Volcker rule.” The Volcker rule prohibits any banking entity from engaging in proprietary trading or sponsoring or investing in hedge funds or private equity funds, subject to limited exceptions. The Volcker rule also requires the Federal Reserve to adopt rules imposing additional capital requirements and quantitative limits on systemically important nonbank financial companies that engage in proprietary trading or sponsor or invest in hedge funds or private equity funds.