Treasury Suggests Two-Year Phase-In For Volcker Rule

Mar 4 2010 | 1:39pm ET

Despite skepticism on Capitol Hill and antagonism from Wall Street, President Barack Obama made clear yesterday that he still backs the controversial “Volcker rule,” which would bar banks from the alternative investments industry.

In a five-page legislative draft sent to Congress, the Treasury Dept. also suggested a two-year phase in for the rule, which would also ban proprietary trading and mergers that would give a bank more than a 10% market share.

That period is shorter than the one proposed by Rep. Barney Frank (D-Mass.), the head of the House Financial Services committee, who suggested five years.

The Volcker rule—named for former Federal Reserve Chairman Paul Volcker, a close adviser to President Obama—would forbid banks from owning, controlling or investing in hedge funds and private equity funds. Banks would also not be allowed to serve as a prime broker to alternative investments firms they advise.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...