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Big Banks to Get Reprieve from Volcker Rule - ABI

Big banks are getting a big reprieve from a post-crisis rule aimed at curbing risky behavior on Wall Street, the New York Times reported. Federal bank regulators yesterday unveiled a sweeping plan to soften the Volcker Rule, opening the door for banks to resume some trading activities restricted as part of the 2010 Dodd-Frank law. The changes would give the largest banks significant freedom to engage in more complicated — and possibly riskier — activities by largely leaving it up to Wall Street firms to determine which trading is permissible under the rule and which is not. The Federal Reserve, along with four other regulators, took steps yesterday to ease several parts of the Volcker Rule, which was put in place to prevent banks from making risky bets with depositors’ money.

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