FDIC Approves Interagency Final Rule to Simplify and Tailor the "Volcker Rule" — 2019-08-20

FDIC Approves Interagency Final Rule to Simplify and Tailor the “Volcker Rule” The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) today approved an interagency final rule to simplify and tailor requirements relating to Section 619 of the Dodd- Frank Wall Street Reform and Consumer Protection Act, commonly known as the “Volcker Rule.” The Volcker Rule generally prohibits banking entities from engaging in proprietary trading and from owning or controlling hedge funds or private equity funds. “One of the post-crisis reforms that has been most challenging to implement for regulators and industry is the Volcker Rule, which restricts banks from engaging in proprietary trading and from owning hedge funds and private equity funds. Distinguishing between what qualifies as proprietary trading and what does not has proven to be extremely difficult.