You’ve probably heard the term “Volcker Rule” thrown around a lot, especially as five separate financial regulators vote on whether to approve the final rule Tuesday. Here’s everything you need to know about about this central piece of the 2010 Dodd-Frank financial reform bill.
Who is the Volcker behind the Volcker Rule?
What does the rule do?
The original intent of the rule was to ban banks who accept federally insured deposits (like your savings account) from making speculative bets with that money. Banks should be able to make home loans, for instance, but speculating on stock prices would be banned. As Volcker himself wrote last year:
“The basic public policy set out by the Dodd-Frank legislation is clear: the continuing explicit and implicit support by the Federal government of commercial banking…
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