Volcker Rule: Under review until further notice

The Trump Administration has been critical of the Dodd-Frank Act since day one, and one of the primary targets has been the Volcker Rule (“rule”). The rule was born in a highly politicized environment during the financial crisis, and while its proprietary trading restriction was intended to promote financial stability, the complexity of implementing the rule has been considered problematic by banks and regulators alike. 

In the most concrete action thus far, the Treasury Department devoted a great deal of attention to the rule in its first report on financial regulation. The report proposes significant changes aimed at reducing the cost and burden of compliance on banks while still remaining true to the policy-intent of the rule. There are signs that at least some of Treasury’s recommendations will be implemented as some have received endorsement from key regulatory agencies, a significant move because many of Treasury’s recommendations can be implemented directly by the agencies rather than through a change in statute by Congress. 

This Regulatory brief analyzes the Treasury report’s recommendations and regulator sentiment to revise the Volcker Rule, offers our view on what will change, and explains what the industry should do next.

Regulatory brief

A publication of PwC's financial services regulatory practice

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Julien Courbe
Financial Services Advisory Leader
Tel: +1 (646) 471 4771

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