Regulations Proposed to Implement the Volcker Rule
The Federal Reserve and other agencies have issued a much-awaited proposed rule implementing the so-called “Volcker Rule,” a set of provisions contained in the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Volcker Rule, once effective, will prohibit banking entities from engaging in proprietary trading and from investing in or sponsoring private equity and hedge funds, subject to certain exceptions and transition considerations. The agencies are seeking comment on the proposed rule until January 13, 2012.