HFSC to hold hearing on progress of Volcker Rule implementation

The House Financial Services Committee plans to hold a hearing in December on the controversial Volcker Rule that prohibits banks from engaging in risky investments with client funds.

On Dec. 13, the HFSC will examine the implementation of the contentious Volcker Rule ban on proprietary trading by banks. Treasurer-level executives and other individuals from the private sector will discuss the impact of the rule on firms and investors seeking access to capital markets, according to CNBC News.

The HFSC originally intended to schedule the Federal Reserve, Commodity Futures Trading Commission, Securities and Exchange Commission, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency for the hearing in order to acquire information regarding the rule’s drafting progress and small-business safeguards.

Regulatory officials indicated that, as a result of the rule’s complexities and the challenges of interagency coordination, the Dec. 31 Volcker Rule deadline will likely be extended into the first quarter of 2013.

“Our goal is to achieve a strong and consistent rule, although the process is not as easy or simple as any of us would like,” Mary Miller, the undersecretary to the Treasury, said, adding that regulators had received more than 18,000 comments on the rule but were making “stead progress” toward implementation, CNBC News reports.

Some members of Congress have expressed concern that the rule could put U.S. firms at a disadvantage, as foreign firms seek to avoid heightened regulatory scrutiny by doing business with non-U.S. firms.

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