Recently, the five financial regulators responsible for implementing the Volcker Rule issued a proposal that would carve up key elements of the rule.
The changes would narrow definitions, expand certain exemptions and significantly reduce the requirements for banks to demonstrate compliance — giving them more leeway to engage in highly risky and conflicted activities. It is particularly dangerous to introduce more risk into the banking system at a time when regulators and legislators are reducing the resilience of the system by chipping away at several other post-crisis safeguards.
The above excerpt was originally published in American Banker.
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