Momentum in the U.S. Congress for revising the Volcker rule is building as a group of U.S. senators proposed bipartisan legislation that would delay the implementation date of the proprietary trading ban as regulators work on a revision.
A group of six U.S. senators proposed legislation today that would move implementation date from the July 21 date set by the Dodd-Frank Act and align it with regulators’ completion of detailed rules for the proprietary trading ban.
Representative Barney Frank, co-author of the Dodd-Frank Act that required regulators to impose the ban, urged affected agencies to complete work on a simplified version before Sept. 3, he said in a statement today. Frank also asked regulators to issue guidance clarifying what compliance will be required if the agencies don’t complete the measure by July 21.
“By linking the effective date to the regulators completing their work, Congress will not be arbitrarily extending the implementation of Dodd-Frank, and financial institutions and markets will be able to comply with final rules rather than being forced to guess what those regulations might be,” the six senators said in a statement today. “This is accomplished by a two-word amendment which would change the effective date from ‘‘earlier of’’ to ‘‘later of’’ between these two dates.
Federal Reserve Chairman Ben Bernanke and other regulators have told lawmakers in congressional testimony that the interagency rule may not be completed by July 21, the effective date set under Dodd-Frank, the financial-rules overhaul enacted in July 2010.
The Senate legislation was proposed by Democrats Mark Warner of Virginia, Kay Hagan of North Carolina and Tom Carper of Delaware, along with Republicans Mike Crapo of Idaho, Pat Toomey of Pennsylvania and Bob Corker of Tennessee.