Sens. Mark Warner (D-VA), Kay Hagan (D-NC), Tom Carper (D-DE), Mike Crapo (R- ID), Pat Toomey (R-PA) and Bob Corker (R-TN) proposed the legislation, noting that Federal Reserve Chairman Ben Bernanke and others have said the regulations implementing the rule may not be completed by the Dodd-Frank Act-mandated deadline.
In a statements the Senators said:
By linking the effective date to the regulators completing their work, Congress will not be arbitrarily extending the implementation of Dodd-Frank, and financial institutions and markets will be able to comply with final rules rather than being forced to guess what those regulations might be.House Financial Services Committee ranking member Barney Frank (D-MA) urged regulators to complete work on a simplified version of the Volcker Rule before Sept. 3 and to issue guidance clarifying what compliance will be required if the regulatory agencies don’t complete the measure by the scheduled July 21 deadline.
The agencies tried to accommodate a variety of views on implementation but the results reflected in the proposed rule are far too complex, and the final rules should be simplified significantly.He added that regulators should clarify “well in advance [of July] what, if any, compliance will be required between the statutory effective date and the date when a rule is issued."
Read Frank’s statement.