From: Pensions & Investments
Five agencies are finalizing updates to the Volcker rule provision of Dodd-Frank, which prohibits federally backed financial institutions from engaging in proprietary trading or having interests in private equity or hedge funds. In June, the three Republican SEC commissioners, including Chairman Jay Clayton, voted to proceed with changes that include tailoring rules to a bank’s size, instead of using a one-size-fits-all approach, and clarifying exemptions for banks’ proprietary trading activity.
“We didn’t even finish completing the path, and now we are ripping up the bricks,” said former Treasury official Michael Barr, now dean of the Gerald Ford School of Public Policy at the University of Michigan in Ann Arbor. “We are heading into the wilderness,” said Mr. Barr, who was special assistant to Treasury Secretary Robert Rubin from 1995 to 1997 and deputy assistant secretary of the Treasury for community development policy from 1997 to 2001.