Home \ Blog \ January 18, 2012 - Joint House Financial Services Subcommittees hearing entitled "Examining the Impact of the Volcker Rule on Markets, Businesses, Investments and Job Creation."

January 18, 2012 - Joint House Financial Services Subcommittees hearing entitled "Examining the Impact of the Volcker Rule on Markets, Businesses, Investments and Job Creation."

One of the most controversial aspects of the Dodd Frank Act is the proposed Volcker Rule prohibiting designated financial institutions from engaging is propriety trading with exemptions for market making and similar narrow industry activities.

The hearing provided an opportunity for Committee leaders to express their views on the record. Chairman Bachus and others suggested that banning propriety trading was a mistake and thus all regulations should be placed on hold. Members who support the timely implementation of the new law said the regulation should be promulgated but suggested the new rule should be carefully monitored and revised if necessary.

The first witness panel featured the leaders of the five federal financial regulatory agencies. Because the rule process is active, they could only acknowledge the interests of the lawmakers without material comment.  A second panel included industry public interest groups who debated the practical impact the Volcker Rule may have on the industry and the economy.

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