The nation’s largest banks are requesting regulators allow more time to comment on a proposed rule to prohibit proprietary trading as part of the Dodd-Frank Act.
On Wed., a handful of trade groups representing the financial industry sent a letter to federal regulators saying that the Volcker Rule is too complex to have all comments submitted by the Jan. 13 deadline, according to Reuters.com.
“Our members are deeply concerned about the potential impact of the proposal on capital formation, markets and liquidity for a range of asset classes and on the safety and soundness of banking entities and the businesses in which they engage," the letter said, Reuters.com reports.
Groups that signed the letter include the American Bankers Association, the Financial Services Roundtable, the Securities Industry and Financial Markets Association, the Financial Services Forum and the Institute of International Bankers.
Lawmakers responsible for including the Volcker Rule in the Dodd-Frank Act hope the rule will prevent banks that receive government money from making risky trades with their own funds in forms of securities, derivatives and other financial products, according to Reuters.
“Our members are devoting significant time to understanding the proposal, including its global impact, actively discussing the proposal and working together to generate thoughtful comments,” the letter said, Reuters.com reports. “Where our members believe that an element of the proposal can be improved while keeping within the intent and policy of the statutory text of the Volcker Rule, they have been working together to craft appropriate suggestions for the Agencies.”