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Thursday, November 29, 2012

Bachus & Hensarling: Delay Volcker Rule Implementation

Reps. Spencer Bachus, the chairman of the Financial Services panel, and Jeb Hensarling, who will be chairman next year are urging financial regulators to delay implementation of the Volcker rule, due to concerns regarding the lack of clarity on how the prohibition on proprietary trading could affect the economy and concerns on how the rule will be enforced.

In a letter to the Federal Reserve, SEC, FDIC, OCC and CFTC the Representatives stated:
Given that the costs that the Volcker Rule will inpose on the U.S. financial system will more than likely outweigh any benefits the rule has to offer, it is absolutely essential that you carefully consider how you will implement it and that your agencies be transparent about the process by which you issue the final rule.

Unfortunately, you have been less than transparent about how you intend to implement the Volcker rule, and the resulting confusion has only made it that much more likely that whatever final rule you issue will compound the regulatory uncertainty that continues to plague our economy.
Baches and Hensarling requested that the Volcker rule implementation be delayed until two years after the final rule is released.

Read the full letter.

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