Senators Mark Warner (D-Va.), Kay Hagan (D-N.C.), Tom Carper (D-Del.), Mike Crapo (R-Idaho), Pat Toomey (R-Pa.) and Bob Corker (R-Tenn.) proposed the bill, saying that Federal Reserve Chairman Ben Bernanke even believes that regulators will not make the July 21 deadline.
“By linking the effective date to the regulators completing their work, Congress will not be arbitrarily extending the implementation of Dodd-Frank and financial institutions and markets will be able to comply with final rules rather than being forced to guess what those regulations might be,” the senators said in a statement.
Ranking member Barney Frank of the House Financial Services Committee pressured regulatory agencies to complete the work on a watered down version of the Volcker Rule before Sept. 3.
“The agencies tried to accommodate a variety of views on implementation but the results reflected in the proposed rule are far too complex, and the final rules should be simplified significantly,” Frank said.
Frank added that regulators should make clear well before July “what, if any, compliance will be required between the statutory effective date and the date when a rule is issued.”