Federal Financial Agencies Issue Volcker Rule Proposal
17 October 2011Financial Services Regulation Update
On October 12, 2011, the Federal Deposit Insurance Corporation (FDIC), along with the Board of Governors of the Federal Reserve System (FRB) and the Office of the Comptroller of the Currency (OCC), (together, the "Federal Banking Agencies") issued a joint notice of proposed rulemaking (NPR) implementing section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank" or DFA), the so-called Volcker Rule. The Securities Exchange Commission (SEC and together with the Federal Banking Agencies, the "Agencies") voted to issue the Volcker Rule NPR on October 13, 2011. Although section 619, which established a new section 13 of the Bank Holding Company Act, calls for the Federal Banking Agencies, the SEC and the Commodity Futures Trading Commission (CFTC) to all issue rules implementing section 619 for institutions within their respective primary jurisdictions, the CFTC is not listed as an issuing agency in the NPR approved by the Federal Banking Agencies and SEC. Press reports have suggested the CFTC is taking a "wait-and-see" approach and may issue its own variation of a proposed rule.
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