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Thought Volcker Rule Went Too Far? There’s More Coming for Banks 

August 30, 2016

Jesse Hamilton, Bloomberg

After years of grappling with the Dodd-Frank Act, banks will soon learn what regulators want to do next to rein in Wall Street’s risky investments.

The Federal Reserve and other agencies are poised to issue a long-overdue report required by the law that lays out recommendations beyond the Volcker Rule to prevent financial firms from triggering an economic crisis, said two people with knowledge of the matter who asked not to be named before its release. The document will include plans for restricting banks’ investments in copper and hard-to-value assets, said one of the people.

While Congress said the report had to be completed within 18 months of Dodd-Frank’s approval in 2010, foot-dragging by regulators has made the exercise a bit of an afterthought in Washington. One group that has been dreading its release is bankers, who are worried the document might suggest sweeping changes to lenders’ ability to invest in physical commodities and buy direct stakes in companies.

“Dodd-Frank gives them the right based on further study to create policy to better protect our financial markets,” Mark Williams, a former Fed bank examiner who is now a lecturer at Boston University’s business school, said of regulators. Read more


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