• Federal Agencies Propose Comprehensive Volcker Rule Implementation
  • October 14, 2011 | Authors: Michael D. Bopp; Kimble C. Cannon; C.F. Muckenfuss
  • Law Firms: Gibson, Dunn & Crutcher LLP - Washington Office ; Gibson, Dunn & Crutcher LLP - Los Angeles Office ; Gibson, Dunn & Crutcher LLP - Washington Office
  • On Tuesday, October 11, 2011, the Federal Reserve Board ("Fed") and the Office of the Comptroller of the Currency ("OCC") released for public comment and the Federal Deposit Insurance Corporation (the "FDIC") met in open session and unanimously approved and released proposed rules implementing the Volcker Rule, Section 619 of the Dodd-Frank Consumer Protection Act of 2010 ("Dodd-Frank"). The Securities and Exchange Commission ("SEC") voted unanimously to approve the proposed rule on Wednesday, October 12. The final rule will be issued jointly by the FDIC, the Fed, the OCC, and the SEC. The FDIC staff indicated during the FDIC open meeting that the Commodity Futures Trading Commission ("CFTC") is expected to issue a comparable proposal in the near future. Note the FDIC staff open meeting comments discussed in detail below. While the other agencies did not provide a public forum for their staffs to comment on the proposed rule to the extent that the FDIC did, some voting members of those agencies provided context for their decision. SEC Commissioner Troy Paredes, for example, disclosed that his vote in favor of seeking public comment on the rule was qualified by concerns about the potential compliance cost and impact on global competitiveness to U.S. firms.