The Volcker Rule: Will It Work, Will It Last—and Who Benefits? A LexisNexis® White Paper

The Volcker Rule: Will It Work, Will It Last—and Who Benefits? A LexisNexis® White Paper

Highlights:

    • The long awaited Volcker Rule, which federal regulators released in December 2013, is tougher than many expected. Even so, those affected by the sweeping set of changes acknowledge that the rule could have been much worse.
    • Wall Street in particular heaved a collective sigh of relief that a prohibition against proprietary trading was crafted in a way that leaves important market-making operations intact.
    • Banks also got a measure of relief in a requirement for directors to review, and chief executives to personally attest to, the implementation of compliance programs. Some Wall Street critics wanted bank CEOs to bear personal responsibility for actual compliance.
    • For all its lauded toughness, some observers suggested the final rule is “so riddled with exceptions, contradictions and foggy language” that its foremost celebrants will be the Wall Street lawyers who got “the Christmas gift of their dreams.”
    • Even before regulators adopted the rule, lawyers were looking for weak spots while preparing for possible litigation. Now that the details are known, several possible strategies for court challenges are taking shape.

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