Several large corporations, including General Electric and Boeing, sent a group letter to regulators on Tuesday, arguing that the Volcker Rule could potentially hurt businesses’ ability to mitigate risk and raise capital.
“The extensive and granular infrastructure created by the 298 page draft rule runs the risk of restricting financial institutions from providing businesses with the beneficial [market-making] and underwriting functions that are needed to raise debt, issue equities and manage risk,” the letter said, according to Reuters.
The letter also says that regulators may not have considered the full effect of the rule on consumers of financial products.
The non-bank entities requested that the Securities and Exchange Commission, Federal Reserve, Commodity Futures Trading Commission, Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency hold a meeting with stakeholders. They also requested that regulators extend the rule’s review to “identify unintended consequences and craft policies to avoid them.”
“We strongly urge you to evaluate the impact of additional regulation on American businesses and the broader economy and not move forward with the implementation of the Volcker Rule in its current form,” the letter said, Reuters reports.
The first draft of the Volcker Rule was offered up by regulators in October and, in accordance with law, needs to be finalized before July, when the rule becomes effective.