Four House Democrats added their names to a letter sent by 116 House Republicans to financial regulators on Wednesday urging them to slow their work on the Volcker Rule.
Democratic Representatives Sanford Bishop (Ga.), Mike Ross (Ark.), David Scott (Ga.) and Heath Shuler (N.C.) agreed to sign the letter after listening to continuous concerns that the complex rule could hurt the already fragile markets.
"With the U.S. economy at a critical juncture, the stakes are simply too high to proceed with undue haste, and not ensure that the rule embraces congressional intent in a way that supports our recovery," the lawmakers wrote, according to TheHill.com.
The letter included a specific request for regulators to extend the rule’s public comment period by at least a month. The current deadline for comments is Jan. 13.
Implementation of the Volcker Rule was tasked to a variety of federal financial regulators by last year’s Dodd-Frank Act. The rule prohibits banks from proprietary trading as well as limits relationships by banks with hedge funds and private equity funds.
The financial industry has warned regulators about issuing a rule that is too restrictive, saying it could result in the failure of markets, according to TheHill.com.
Democratic Senators, however, including Sen. Carl Levin (D-Mich.), say that the proposed Volcker Rule is not strict enough.
Levin said that the recent failure of MF Global, as well as the sovereign-debt crisis in Europe, “strengthens” the hand of proponents pushing stronger enforcement and a tough Volcker rule, according to MarketWatch.com.