PAUL A. VOLCKER STATEMENT UPON BANKING AGENCIES AGREEMENT

(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 
#<873920.660640.3.10.0.0.76>#
 
 
Press spacebar to pause and continue. Press esc to stop.