Fed finalises Volcker rule reform
Amendments permit banks to return to risky activity seen in 2008 financial crisis, Lael Brainard warns
The Federal Reserve and other regulators have finalised an amendment to the Volcker rule, which will allow banks to take a stake in venture capital and credit funds.
Banks are also no longer required to set aside cash provisions for certain derivative trades, the June 25 announcement says.
The Volcker rule, first implemented in 2013, was designed to prevent banks from engaging in speculative investments with their own funds. Named after former Fed chair Paul Volcker, whose ideas formed the
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