Volcker Rule Change Backed in House Panel's Dodd-Frank Remedy
- Bill would leave Fed as sole arbiter of trading restrictions
- Fans say ban would be easier to follow, foes say easier to gut
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U.S. House lawmakers have advanced legislation that could either expand or upend Congress’s best hope of rolling back banking-industry regulations since the financial crisis.
The proposals approved by the Financial Services Committee on Wednesday include a Volcker Rule tweak that would put the Federal Reserve solely in charge of enforcing the Dodd-Frank Act ban on proprietary trading instead of the five agencies now assigned to the task. Supporters say the change would make it easier for Goldman Sachs Group Inc., JPMorgan Chase & Co. and their peers to abide by the rule, while critics complain that it would make it easier to weaken restraints on excessive risk-taking.