Bank stocks surged after federal regulators announced they plan to roll back post-financial crisis restrictions, including the Volcker Rule which prevent banks from making large investments into certain funds by skleb1234
Bank stocks surged after federal regulators on Thursday announced they plan to roll back post-financial crisis restrictions, including the Volcker Rule which prevent banks from making large investments into certain funds.... [+]The Office of the Comptroller of the Currency , Federal Deposit Insurance Corp. and Federal Reserve all approved changes to the Volcker Rule on Thursday.
Wall Street banks will now be allowed to boost their investments in venture capital and similar funds, BloombergThe OCC and FDIC also scrapped a requirement that lenders hold cash on margin when trading derivatives with different affiliates of the same firm, which will let banks pocket billions of dollars that would otherwise be set aside for derivatives trades. estimated $40 billion
for Wall Street banks, according to Bloomberg, though the Federal Reserve still needs to sign off on the move. Shares of major banks soared on the news, leading the market to cut its losses from disappointing unemployment data andJPMorgan and Morgan Stanley saw their stocks rise more than 2%, while Citigroup and Bank of America are both up over 1.5%.The Volcker Rule was originally established as part of the 2010 Dodd-Frank Act, with the aim offrom acting like hedge funds and taking irresponsible risks with their investments.
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