Volcker Rule Timeframe Slips

A frame from a screencast from the US House Fi...

 

Fed Chairman Ben Bernanke told the Senate Banking Committee last week that regulators will not meet a July 21 congressional deadline for finalizing regulations to implement the Volcker Rule. Dodd-Frank co-author Congressman Barney Frank urged regulators last week to simplify their draft rules following heavy criticism from the financial industry and its trade associations, among others.

The Government Accountability Office estimated that trading operations at the six largest banks generated $15.6 billion in revenue between 2006 and 2010. Compliance and capital costs associated with the Volcker Rule could cost the financial industry $1 billion per year according to an estimate by the U.S. Office of the Comptroller of the Currency.

Washington is buzzing today about this BloombergBusinessweek article that analyzes industry efforts to modify the Volcker Rule.