Agencies Issue Final Volcker Rule
The Federal Reserve Board ("FRB"), FDIC, Officer of the Comptroller of the Currency ("OCC"), SEC and CFTC (the "Agencies") issued final rules implementing Section 619 of the Dodd-Frank Act, commonly known as the "Volcker Rule." In addition to the final rules, the FRB issued an order further extending the conformance period provided under Section 619, which was previously set to expire this coming July, for one additional year. As a result, covered banking organizations will have until July 21, 2015, to fully conform their activities and investments to the Volcker Rule's requirements. Notwithstanding this extension, the order makes clear that banking entities with stand-alone proprietary trading operations will be expected to terminate or divest those operations "promptly." Additionally, with respect to the largest banking entities that engage in covered trading activity, the final rules require various quantitative metrics to be reported to the Agencies beginning on June 30, 2014.
Additional information, including analyses of specific aspects of the Volcker Rule, will be forthcoming from Cadwalader.
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Click here to view the Cadwalader Cabinet's new page of Volcker Materials.
See: Text of the Final Volcker Rule; Preamble to the Final Rule; Fact Sheet of the Final Rule; Volcker Rule Board Memo; SEC Press Release. See also: Opening Statement by FRB Chairman Bernanke; Opening Statement by FRB Governor Tarullo; Statement of FDIC Chairman Gruenberg; Statement of Support by FDIC Vice Chairman Hoenig; Statement of SEC Chair White; Statement of SEC Commissioner Aguilar; Dissenting Statement by SEC Commissioner Gallagher; Dissenting Statement by SEC Commissioner Piwowar; Statement of SEC Commissioner Stein; Statement of Support by CFTC Chairman Gensler; Statement of Support by CFTC Commissioner Wetjen; Dissenting Statement by CFTC Commissioner O'Malia; Statement by CFTC Commissioner Chilton; Chairman Hensarling Statement on Final Volcker Rule; SIFMA Comment Letter; MSRB Statement. Click here to watch the full video of the Open Board Meeting.