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:
- engaging in proprietary trading for its own account,
- acquiring or retaining an ownership interest in or sponsoring a “covered fund”, and
- 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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