A House panel will hear from financial regulators on Wednesday about implementing the Volcker Rule, which has received widespread criticism from both Democrats and Republicans alike.
Members of both parties have opposed the Volcker Rule, a measure intended to curtail risky investments by financial institutions. House Committee of Financial Services Chairman Spencer Bachus (R-Ala.) has spoken out repeatedly against the provision.
"If the Volcker Rule's prohibitions are expansively interpreted and rigidly implemented… the damage to U.S. competitiveness and job creation could be substantial," Bachus wrote in a November 3 letter to members of the Financial Services Oversight Council.
A group of 17 House Democrats also expressed concern in a November letter to Federal Reserve Chairman Ben Bernanke, calling the current version of the Volcker Rule “unnecessarily complex.”
The Volcker Rule has received so much criticism from banks and politicians that U.S. financial regulatory agencies extended the comment period on the measure, allowing for further input from lenders. Initially set to end Jan. 13, the comment period has been extended to Feb. 13.