Letter to Regulators Calls for a Single, Unified Set of Regulations and Recommends a New Public Comment Period for Proposed Regulations
Dec. 20, 2012
Washington, D.C. – The Bipartisan Policy Center (BPC) Financial Regulatory Reform Initiative’s working group on Capital Markets and the Volcker Rule sent a letter to the Treasury Department and the five federal financial regulators today, also known as the “Agencies,” calling for one consistent Volcker rule and for a new public comment period for proposed regulations. The letter was prompted by recent statements by senior officials at the Securities and Exchange Commission and Commodity Futures Trading Commission that the agencies could adopt regulations different from those that the Federal Reserve, Federal Deposit Insurance Corporation, and the Comptroller of the Currency have proposed.
Click here to read the letter.
"We support the policy goal underpinning the Volcker Rule: federal supported banking institutions should not engage in activities detrimental to the stability of those institutions or to US financial markets," said the group in the letter. "Without regard to the underlying substantive difference among the Agencies, we believe it is very important that the Agencies act in a coordinated manner to adopt final Volcker Rule regulations that are substantively identical and issued at the same time."
The initiative’s working group on Capital Markets and the Volcker Rule includes: John Coffee, Adolf A. Berle Professor of Law, Columbia Law School; Jim Cox, Brainerd Currie Professor of Law, School of Law at Duke; Annette Nazareth, Partner, Davis Polk & Wardwell, LLP and former SEC Commissioner; and Jonathan Macey, Sam Harris Professor of Corporate Law, Corporate Finance and Securities Law at Yale University.
In the letter, the working group members also asked the Agencies to allow a new public comment period on the issue. Given the complexity of the regulations, Congress, financial market participants, consumer advocacy groups, and foreign regulators will need more time to digest and comment on the proposed changes.
"Because of the complexity of this issue and the potential value from additional public commentary, we believe that substantive changes to the proposed regulations would benefit from the same comment process," said the group.
BPC launched the Financial Regulatory Reform Initiative in October 2012 to evaluate the financial regulatory system after the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The initiative will propose and support reforms that balance financial stability, economic growth, and consumer protection. To learn more about the initiative, please visit www.bipartisanpolicy.org
Financial Regulatory Reform Initiative