Volcker 2.0 is said to face do-over after Wall Street complaints - ABI

U.S. regulators are poised to scrap their proposal for revising Volcker Rule restrictions on banks' trading in favor of a newer version as they respond to a misstep that drew fire from Wall Street lobbyists, according to people familiar with the effort.  The Federal Reserve and other financial regulators are working on changes to their Volcker 2.0 plan that will likely require the agencies to re-propose the rule, said two people who requested anonymity because the process isn't yet public. No final decision has been made to abandon the earlier proposal, the people said.  Fed Chairman Jerome Powell told lawmakers last week that he's heard the industry's worries about the proposed new standard and also that the current restrictions unnecessarily hamper their investments in certain funds. He said the Fed is "looking carefully" at ways to address the complaints. But Comptroller of the Currency Joseph Otting was more pointed in January, when he said, "I think we have to step back and think through that again," and that the agencies may have "overshot."

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