Wednesday, December 11, 2013

WALL STREET - Regulators Adopt 'Volcker Rule' For Risky Trades

"Will the Volcker Rule change the culture of Wall Street?" PBS Newshour 12/10/2013

Excerpt

JUDY WOODRUFF (Newshour):  Five years after the financial crisis crippled the American economy, the behavior of Wall Street and other financial firms has been the subject of intense debate, lobbying and legislation.

At the center of financial reform, one rule has attracted more scrutiny than almost any other, the Volcker rule, named after former Federal Reserve Chairman Paul Volcker.

Today, federal regulators spelled out how it's supposed to work.  And now the question is, what kind of impact will it have on reducing risk?

Jeffrey Brown has the story.

JEFFREY BROWN (Newshour):  The Dodd-Frank Act, signed into law by President Obama in 2010, contained hundreds of provisions designed to avoid future meltdowns, among the most controversial, the Volcker rule, named for the former Fed chairman.

MAN:  All in favor, please say aye.

MAN:  Aye.

MAN:  Aye.

JEFFREY BROWN:  Its final approval today by five regulatory agencies signals a major shift in practices banks can undertake and their oversight.

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