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Regulators Consider Easing Volcker Trading Rules 

November 10, 2014
Cheyenne Hopkins, Ian Katz, Bloomberg

U.S. regulators are considering changes to the Dodd-Frank law that could ease requirements on the Volcker Rule’s trading restrictions.

Scott Alvarez, the Federal Reserve’s general counsel, said the central bank is reviewing whether to extend a deadline for implementing the Volcker Rule and changing “metrics” used in the regulation. He said a rule requiring banks to separate their derivatives trading from units that benefit from federal backstops should be revisited.

“Our greatest challenge for the next year is the Volcker rule,” Alvarez said today at a American Bar Association conference in Washington. “We are already seeing some things that we probably will change,” he added.

Alvarez’s comments show a growing willingness to alter portions of Dodd-Frank, which Congress passed in 2010 to tighten bank regulation after risky lending and the sale of toxic mortgage securities crippled the global economy. 

Read more: Bloomberg

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