(The following is a reformatted version of a statement issued by Paul A. Volcker. The statement was confirmed.) STATEMENT BY PAUL A. VOLCKER UPON THE BANKING AGENCIES AGREEMENT ON THE SO-CALLED VOLCKER RULE The five banking regulatory authorities have now successfully responded to the provisions of the Dodd/Frank Act by setting out a comprehensive regulation restricting proprietary trading by commercial banks in the United Sates. In a long and arduous process, the agencies have dealt comprehensively with thousands of particular conceptual and practical questions raised by affected bankers, by legions of lobbyists, by other interested parties, and by the general public. The effort, shepherded by the Financial Stability Oversight Council and its Chairman, Treasury Secretary Lew, has now put in place one significant part of the larger on-going effort to rebuild a strong banking system fully capable of, and attentive to, meeting the critical financial needs of businesses and individuals. I look forward to a process, called for by the new regulation, in which the boards of directors and the top management of our leading commercial banks will cooperate closely in implementing the new rules within the institutions for which they are responsible. Appropriate internal controls and practical “metrics” for identifying proprietary trading are central to a workable and effective administration of the regulation. Equally, the supervisory agencies themselves will need to be equipped and alert in detecting and dealing with problems as they arise. In the end, respect for the intent and spirit of the law should become “second nature” for supervisors and banks alike. The result should help the process of restoring trust and confidence in commercial banking institutions. It is after all those institutions which benefit from explicit and implicit public support that we count on to provide a strong, safe, and effective financial system. (bjh) NY #<873920.6606184.108.40.206.0.76>#
PAUL A. VOLCKER STATEMENT UPON BANKING AGENCIES AGREEMENT
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