The Federal Reserve, the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the Securities and Exchange Commission (SEC) (collectively, the “agencies”) in November sought public comment on a proposal to implement the Volcker Rule. The Commodities Futures Trading Commission (CFTC) recently issued its substantially similar proposal for comment.
Conclusion The main theme of this conversation is that at the origin of the crisis we find a variety of market developments spurred by financial innovation that were not understood neither by the market actors, banks, and capital markets, nor by regulators. The future challenge lies in producing an environment that is innovation friendly but where knowledge of market participants is adequate.