The Volcker Rule is a federal banking regulation in the United States that restricts banks from engaging in proprietary trading and from owning or investing in hedge funds and private equity funds. Enacted as Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, it is named after former Federal Reserve Chairman Paul Volcker, who championed the restriction as a response to risk-taking that contributed to the 2008 financial crisis. The rule is implemented and enforced jointly by several federal financial regulators, including the Federal Reserve, the Securities and Exchange Commission, and the Office of the Comptroller of the Currency.
Facts
EraSourced to the subject's own accountProposed 2010; implemented July 2015. 1 Promulgated BySourced to the subject's own accountUnited States Congress, as section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. 1 Jurisdiction ScopeSourced to the subject's own accountUnited States federal law; applies to United States banks. 1 Regulatory DomainSourced to the subject's own accountRestriction on proprietary trading by commercial banks. 1 Cross-Tradition Connections
Associated With
The Volcker Rule is Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
In Legal System
United States federal rule, within the common law tradition.
Sources
1. Volcker Rule (Wikipedia)
WikipediaLead paragraph (era)Quote, Lead paragraph (era)
The Volcker Rule is section 619 of the Dodd–Frank Wall Street Reform and Consumer Protection Act. The rule was originally proposed by American economist and former United States Federal Reserve chair Paul Volcker in 2010 to restrict United States banks from making certain kinds of speculative investments that do not benefit their customers. It was not implemented until July 2015.
Volcker argued that such speculative activity played a key role in the 2008 financial crisis. The rule is often referred to as a ban on proprietary trading by commercial banks, whereby deposits are used to trade on the bank's own accounts, although a number of exceptions to this ban were included in the Dodd–Frank law.
1. Volcker Rule (Wikipedia)
WikipediaLead paragraph (promulgated-by)Quote, Lead paragraph (promulgated-by)
The Volcker Rule is section 619 of the Dodd–Frank Wall Street Reform and Consumer Protection Act. The rule was originally proposed by American economist and former United States Federal Reserve chair Paul Volcker in 2010 to restrict United States banks from making certain kinds of speculative investments that do not benefit their customers. It was not implemented until July 2015.
Volcker argued that such speculative activity played a key role in the 2008 financial crisis. The rule is often referred to as a ban on proprietary trading by commercial banks, whereby deposits are used to trade on the bank's own accounts, although a number of exceptions to this ban were included in the Dodd–Frank law.
1. Volcker Rule (Wikipedia)
WikipediaLead paragraph (jurisdiction-scope)Quote, Lead paragraph (jurisdiction-scope)
The Volcker Rule is section 619 of the Dodd–Frank Wall Street Reform and Consumer Protection Act. The rule was originally proposed by American economist and former United States Federal Reserve chair Paul Volcker in 2010 to restrict United States banks from making certain kinds of speculative investments that do not benefit their customers. It was not implemented until July 2015.
Volcker argued that such speculative activity played a key role in the 2008 financial crisis. The rule is often referred to as a ban on proprietary trading by commercial banks, whereby deposits are used to trade on the bank's own accounts, although a number of exceptions to this ban were included in the Dodd–Frank law.
1. Volcker Rule (Wikipedia)
WikipediaLead paragraph (regulatory-domain)Quote, Lead paragraph (regulatory-domain)
The Volcker Rule is section 619 of the Dodd–Frank Wall Street Reform and Consumer Protection Act. The rule was originally proposed by American economist and former United States Federal Reserve chair Paul Volcker in 2010 to restrict United States banks from making certain kinds of speculative investments that do not benefit their customers. It was not implemented until July 2015.
Volcker argued that such speculative activity played a key role in the 2008 financial crisis. The rule is often referred to as a ban on proprietary trading by commercial banks, whereby deposits are used to trade on the bank's own accounts, although a number of exceptions to this ban were included in the Dodd–Frank law.
Major Legal Systems in the World Today
Rene David and John E.C. Brierley, Stevens and Sons, 1985In Legal System: Law of the United States
What is the Volcker Rule? (Demos)
Demos, 2013Associated With: Dodd-Frank Wall Street Reform and Consumer Protection Act
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