Foster Legislation to Amend Volcker Rule Passes House
WASHINGTON, DC – Today, Congressman Foster’s amendment to the Volcker Rule Regulatory Harmonization Act passed the U.S. House. The amended legislation would strengthen the Volcker Rule within the Dodd-Frank Wall Street Reform and Consumer Protection Act by making the regulatory process more efficient. It would make the Federal Reserve the rulemaking agency, streamlining the process for updating the rule as new market conditions create new threats. It would also identify the regulator responsible for oversight of an institution based on longstanding law in the Federal Deposit Insurance Act.
“When I first entered Congress, our economy was reeling from the Great Recession. Millions of families lost their homes and jobs. That’s why I worked hard to help draft the Dodd Frank Wall Street Reform and Consumer Protection Act. I am proud of the way it has contributed to a more stable and better capitalized financial system, so that hardworking families never have to endure another financial crisis,” Foster said. “This legislation would build on the success of the Dodd-Frank Act and make the regulatory process more efficient and clear to financial institutions.”
The Volcker Rule was passed as a part of the Dodd-Frank Wall Street Reform and Consumer Protection Act and signed into law in 2010. The Rule was proposed by former Chairman of the Federal Reserve Paul Volcker to limit types of speculative investments that experts suggested were part of the cause of the financial crisis.
Video of Congressman Foster’s remarks on the legislation are available here.