Yahoo! Finance, January 30, 2020: Fed to pare back ‘Volcker rule’ to expand bank investment in venture capital, securitized loans
The Federal Reserve is proposing tweaks to a key post-crisis bank regulation that would allow banks to be more active in risky markets like start-up investments and securitized loans.
The new regulatory proposal would expand the Volcker rule’s exemptions to allow banks to own stakes in or operate venture capital funds and credit funds. The Fed will solicit public comment before it finalizes the rule.
The Volcker rule was part of the Dodd-Frank financial regulatory package enacted into law in 2010. The regulation was named after former Fed Chairman Paul Volcker, who wanted to discourage banks from taking on excessive risk for profit-taking that did not ultimately benefit their customers.
