Regulators set to OK rules to limit financial risk-taking
New York Times: Federal regulators are poised to approve a tougher-than-expected version of the so-called Volcker Rule, adopting a harder line against Wall Street risk-taking, according to a copy of the rule reviewed by The New York Times.
The rule, which will be put before five regulatory agencies on Tuesday, is a symbol of the Obama administration’s post-financial-crisis crackdown on Wall Street. In particular, it bans banks from trading for their own gain, a practice known as proprietary trading.
In doing so, the Volcker Rule takes aim at the sort of risk-taking responsible for a $6 billion trading blowup last year at JPMorgan Chase