“Volcker Rule” Implementation Proposed

Simon Riveles SEC

On October 11, 2011, the Federal Reserve’s Board of Governors, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation issued a proposed rule implementing the requirements of new Section 13 of the Bank Holding Company Act of 1956, the so-called “Volcker Rule”.

The proposed rule generally prohibits a “banking entity” from:

  1. engaging in proprietary trading for its own account,
  2. acquiring or retaining an ownership interest in or sponsoring a “covered fund”, and
  3. entering into certain relationships with a “covered fund”,

in each case, subject to various exceptions.

Comments on the proposed rule are due by January 13, 2012.

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