The Federal Reserve wants to soften the Volcker Rule on big banks


The three members of the Federal Reserve Board voted unanimously on Wednesday to move forward a proposal that would roll back the Volcker Rule, which prevents banks from making risky bets with depositors' money.
The Volcker Rule has been in effect since April 2014 and is meant to keep banks in check in the wake of the 2008 financial crisis. Wall Street has complained about the rule ever since, and Fed Chairman Jerome Powell said Wednesday that regulators are trying to "replace overly complex and inefficient requirements with a more streamlined set of requirements."
The proposal is now open to 60 days of public comment, before the Fed and the four other agencies in charge of the Volcker Rule make a decision on finalizing the change. "We have had almost five years of experience in applying the Volcker Rule," Powell said. "The agencies responsible for implementing the rule see many opportunities to simplify and improve it in ways that will allow firms to conduct appropriate activities without undue burden, and without sacrificing safety and soundness."
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Catherine Garcia has worked as a senior writer at The Week since 2014. Her writing and reporting have appeared in Entertainment Weekly, The New York Times, Wirecutter, NBC News and "The Book of Jezebel," among others. She's a graduate of the University of Redlands and the Columbia University Graduate School of Journalism.
-
The Roses: Olivia Colman and Benedict Cumberbatch star in black comedy reboot
The Week Recommends 'Acidly enjoyable' remake of the 1980s classic features a warring couple and toxic love
-
Why reports of Donald Trump's demise are greatly exaggerated
In The Spotlight US president has once again brushed aside rumours that he's dead
-
Lose yourself in these magnificent mazes
The Week Recommends These fiendishly clever puzzles aren't just for kids
-
New York court tosses Trump's $500M fraud fine
Speed Read A divided appeals court threw out a hefty penalty against President Trump for fraudulently inflating his wealth
-
Trump said to seek government stake in Intel
Speed Read The president and Intel CEO Lip-Bu Tan reportedly discussed the proposal at a recent meeting
-
US to take 15% cut of AI chip sales to China
Speed Read Nvidia and AMD will pay the Trump administration 15% of their revenue from selling artificial intelligence chips to China
-
NFL gets ESPN stake in deal with Disney
Speed Read The deal gives the NFL a 10% stake in Disney's ESPN sports empire and gives ESPN ownership of NFL Network
-
Samsung to make Tesla chips in $16.5B deal
Speed Read Tesla has signed a deal to get its next-generation chips from Samsung
-
FCC greenlights $8B Paramount-Skydance merger
Speed Read The Federal Communications Commission will allow Paramount to merge with the Hollywood studio Skydance
-
Tesla reports plummeting profits
Speed Read The company may soon face more problems with the expiration of federal electric vehicle tax credits
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year