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Congresswoman presses regulators on Volcker Rule data

The New York Times

Monday, August 29, 2016

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A senior Democrat on the House Financial Services Committee is pressing regulators to share two years of market data they have collected in connection with the Volcker Rule, a provision of the Dodd-Frank Act intended to rein in banks’ risky trading and investments.

Representative Carolyn B. Maloney, Democrat of New York, sent a letter to regulators on Monday requesting information about certain quantitative trading metrics that the agencies had been collecting since before regulators prohibited banks from making risky bets with their own money last July…

“The industry was largely against it,” said Justin Schardin, director of the financial regulatory reform initiative at the Bipartisan Policy Center. “It has clearly cost a lot in compliance, it may be affecting market liquidity — there’s some debate about that — and the benefits are really hard to figure out.”

“I’m not saying that’s because there are no benefits, but it’s hard to determine what they are and to quantify them” he said. “And it’s not that clear how the agencies are going to enforce this, how tough they’re going to be.”