The Volcker Rule: Will It Give Banks More Data to Manage?
There’s yet another new banking regulation on the table—and this one’s making some waves. This time, the FDIC, SEC and other regulators are taking aim at how banks conduct their trading activity. The Volcker Rule—by far the most significant provision of the Dodd-Frank financial overhaul legislation passed last year—is designed to limit banks’ proprietary trading (trading conducted for the banks’ own profit and not on behalf of their clients). Proprietary trading is apparently a very profitable venture for many of our nation’s largest banks. They’ve been fighting the Volcker Rule tooth and nail, having spent a whopping $17.2 million just last year to lobby on the proposed regulation, according to The Hill.com.
