- The Federal Reserve releases proposal to rework the Volcker Rule in an effort to reduce banks' compliance costs while retaining the 2013's rule's "effectiveness and consistency" with the Dodd-Frank Act. Among the proposals features are:
- It adopts a tailored approach based on size and scope of banking entity's trading activities. They also seek to reduce metrics reporting, recordkeeping and compliance program requirements for all banking entities.
- Banks that have trading assets and liabilities of $10B or more would be required to comply with the most extensive set of requirements.
- A second tier of banks with less than $10B of trading assets and liabilities but more $1B (excluding those involving obligations or guarantees by the U.S. or U.S. agencies) would be subject to reduced compliance requirements.
- The third category of under $1b in trading assets and liabilities would be subject to the lowest level of compliance requirements.
- The proposal reduces restrictions on the eligibility of an activity to qualify as a permitted risk-mitigating hedging activity
- Foreign banks would get some breaks.
- Public feedback would be accepted for 60 days if Fed Governors vote at today's meeting to seek public comment.
- Related tickers: BAC,C,JPM,WFC,GS,MS
- Now read: Bank of America (BAC) Presents At 2018 Deutsche Bank (DE:DBKGn) Annual Global Financial Services Conference - Slideshow
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