Volcker Rule Should Require Sign-Off by Bank CEOs, Panel Says
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Regulators should carry out a “robust implementation” of the Volcker rule that includes requiring banks’ chief executives to vouch for their compliance systems, a U.S. government panel said.
The Financial Stability Oversight Council, charged with preventing a repeat of the 2008 financial crisis, released a study yesterday recommending that regulators mandate a “public attestation” on compliance by CEOs. The 81-page study analyzed ways that the Volcker rule, which bans banks from risking capital by trading for their own accounts, should be applied.