Fed Gives Banks Until July 2014 to Comply With Volcker Rule
By Carla Main – Apr 20, 2012
Wall Street banks will have two years to implement the so- called Volcker rule so long as they make a “good faith” effort to comply with the ban on proprietary trading, U.S. regulators said. Banks will get the “full two-year period” provided by the Dodd-Frank financial overhaul law to “conform” their activities and investments, the Federal Reserve and four other U.S. agencies said in a statement yesterday. The Fed has the authority to extend the period of compliance beyond July 21, 2014, the regulators said. Regulators had signaled that they probably would provide banks more clarity because they wouldn’t finish the rule before the July 21, 2012, implementation deadline. Yesterday’s statement isn’t “an all-clear” because regulators also said the banks need to make plans to comply, said Karen Shaw Petrou , a managing partner at Federal Financial Analytics, a Washington research firm whose clients have included Wells Fargo & Co. (WFC). Lawmakers and regulators have considered taking action on the timeline for the Volcker rule at the request of the banking industry, which raised concerns about how to comply with the statute.