Senators Welcome Guidance for Volcker Rule
Washington, D.C. - The Federal Reserve has announced that firms will have two full years to comply with the so-called Volcker rule, allowing regulators more time to assess the effect of the proposed rule. Earlier this year, Senators Mike Crapo (R-ID), Mark Warner (D-VA), Pat Toomey (R-PA), Kay Hagan (D-NC), Tom Carper (D-DE) and Bob Corker (R-TN) introduced bipartisan legislationthat links the effective date of the Volcker Rule to 12 months after the issuance of a final rule rather than two years after enactment of Dodd-Frank. Crapo and Warner, lead sponsors of the bill, issued the following statement:
"Today's announcement by the Federal Reserve provides much needed clarity about what will happen with compliance of the Volcker Rule on July 21, irrespective of whether the final rules are in place," the senators said. "Now the agencies should take the time to understand the feedback they have received and provide a clear rule that takes into consideration the liquidity of the financial markets and the cost of capital."