Spencer Bachus, the chairman of the House Financial Services Committee, is requesting input from the American public and investors regarding alternatives to the controversial ban on proprietary trading known as the Volcker Rule.
The HFSC announced on Tuesday that it was requesting public input on the rewriting of the Volcker Rule, one of the most quarrelsome provisions of the 2010 Dodd-Frank Act. The rule aims to prevent banks from engaging in proprietary trading—or risky investments with client funds. The rule also limits the ability of traders to invest in hedge and private equity funds, The Hill reports.
Bachus warned that the rule could have a potentially “devastating” impact on the fragile U.S. economy, adding that lawmakers are exploring “legislative alternatives” to the rule.
“If regulators implement the Volcker Rule in its current form, the repercussions will be devastating to our economy,” Bachus said, according to The Hill. “It will undermine our nation’s ability to compete and make it harder for Main Street businesses to raise capital so they can grow and create jobs.”
The American public, professionals and investors may submit alternative suggestions to an email set up specifically for that purpose — firstname.lastname@example.org.
Following an announcement that the final rule would not be in place before the law’s July deadline, regulators said earlier this year that financial institutions would not have to comply with the rule until mid-2014, The Hill reports.