Can the OCC reinterpret the Volcker Rule on its own?
By John Heltman and Lalita Clozel
Acting Comptroller of the Currency Keith Noreika is floating the possibility of unilaterally reinterpreting an interagency ban on proprietary trading, but there are doubts about how far the agency can move on its own and whether that would be a good idea. …“Volcker is a little bit more complicated because there is a statutory requirement for an interagency rule,” said Karen Shaw Petrou, managing partner at Federal Financial Analytics. “This is where the details start to matter.” …“The original interagency Volcker Rule wasn’t crafted with the focus of, how do we make this work?” Petrou said. “It was crafted … to think of every possible scenario for every possible institution in each one of the five agencies, and embody it in a rule — which, unsurprisingly, ends up in a giant, unimplementable blob.”