Proposed Regulations

Proposed Regulations on Volcker Rule

On October 11, the SEC, Fed, FDIC and OCC each issued a request for comment on proposed regulations implementing the requirements of Section 619 of the Dodd-Frank Act, otherwise known as the Volcker Rule. The Volcker Rule generally prohibits: (i) insured depository institutions, bank holding companies, and their subsidiaries or affiliates from engaging in short-term proprietary trading of any security, derivative, or certain other financial instruments for a banking entity’s own account; (ii) owning, sponsoring, or having certain relationships with, a hedge fund or private equity fund; and (iii) banking entities from engaging in an exempted transaction or activity if it would involve a material conflict of interest between the banking entity and its clients or counterparties or would result in a material exposure to high-risk assets. Comments must be submitted by January 13. Proposed Rule. Fed Release. FDIC Release. OCC Release.