U.S. regulators have agreed to extend the Volcker Rule comment period by 30 more days to allow the public and banking industry more time to submit thoughts and suggestions on the rule’s proposed framework.
The decision followed a letter requesting the comment extension sent by a bipartisan group from the House of Representatives to the five regulatory agencies charged with implementing the controversial rule.
More than 100 Republicans and four Democrats signed the letter, which addressed their concerns that the complexity of the rule as well as its potential negative impact on the markets called for additional comment time.
"Initial reports from asset managers, mutual funds, pension plans and other stakeholders suggest that the rule, as drafted, would result in higher borrowing costs for American businesses, thereby impacting economic growth and job creation," the lawmakers wrote to the heads of the Federal Reserve, the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Federal Deposit Insurance Corp and the Office of the Comptroller of the Currency, according to Reuters.com.
The rule was a requirement of last year’s Dodd-Frank Act and required regulators to implement bans on financial institutions’ ability to engage in proprietary trading and limited their relationships with hedge funds or private equity funds.
Comments were due by January 13, 2012. The extension allows comments to be submitted until February 13, 2012.