Foster Amendment to Make Volcker Rule More Efficient Passes Committee Vote
WASHINGTON, DC – This week, Congressman Bill Foster (D-IL) offered an amendment in the Financial Services Committee to make the Volcker Rule more effective. Currently, a committee of five regulators writes the rule, and each holds veto power. This rulemaking procedure has led to regulations that are delayed, inconsistent, and more complicated than necessary. The amendment would consolidate authority for future rulemaking at the Federal Reserve without altering the substance of the Volcker Rule.
“As an original co-author of the Dodd-Frank Act, I understand the significance that the legislation had on our country’s economy. Thanks to this legislation, we were able to avoid another financial crisis and create regulations that ensured stability and that attracted capital from around the world. The amendment I offer today would result in a simpler and clearer rule, creating a process that is more efficient with more consistent implementation,” Foster said. “This bill would not alter the substance of the Volcker Rule or weaken the general proposition that insured depository institutions should not engage in proprietary trading. Instead, it would give the Federal Reserve, the regulator at the top of the corporate hierarchy for any institution, the pen for writing the policy.”
The Volcker Rule was passed as a part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Rule was proposed by former Chairman of the Federal Reserve Paul Volcker to limit types of speculative investments.
Video of the Congressman Foster’s remarks are available here.