What are the implications of the Volcker Rule?

What are the implications of the Volcker Rule?

The Volcker Rule generally prohibits banking entities (e.g., insured depository institutions and their affiliates) from investing in, sponsoring, or having certain relationships with private equity funds, hedge funds and other entities that are defined under the Volcker Rule as “covered funds,” subject to certain exceptions.

Who is the chairman of the FDIC on the Volcker Rule?

According to Chairman of the FDIC Jelena McWilliams, the Amendments will provide “more clarity, certainty, and objectivity around the Volcker Rule, while tailoring the requirements to focus on those banks that conduct the overwhelming majority of trades.”

Who was president when Volcker changed Fed policy?

Presidents Richard Nixon and Jimmy Carter became desperate enough to tinker with price controls, the results being disastrous. Volcker, in office only two months, took the radical step of switching Fed policy from targeting interest rates to targeting the money supply. The days of “easy credit” turned into the days of “very expensive credit.”

When is the grace period for the Volcker Rule?

Banking entities will have a one-year grace period, until January 1, 2021, to fully comply with the final rule’s amendments, but may also voluntarily comply, in whole or in part, with the amendments prior to such compliance date. Following is a high-level summary of certain key features of the final rule.

What does predominantly mean in Volcker 2.0?

However, “predominantly” now means only 75% or more of the fund’s ownership interests and (iv) is amended to only count interests held by senior executive officers and directors, instead of all employees and directors. Add a new requirement that the distribution be subject to substantive disclosure and retail protection laws or regulations; and