Regulatory agencies will vote on Tuesday on a final draft of the contentious Volcker Rule, a ban on proprietary trading that seeks to curb risky activities on Wall Street, but attorneys and lobbyists are prepared to challenge the measure.
Several lobbying and trade groups have promised to challenge the rule, which limits bank’s ability to invest in hedge funds and prohibits banks from trading for their own gain, DealBook reports.
The regulators responsible for drafting the rule, including the Federal Reserve, OCC, FDIC, CFTC and SEC, have overcome internal differences to draft identical versions of the rule before year’s end, a deadline imposed by U.S. Treasury Secretary Jack Lew.
“The proposal that went out over two years ago was largely just a series of questions,” SEC Commissioner Daniel Gallagher said, according to Reuters. “The final rule-making that you’ll see is, I think, significantly different than that proposal, such that it should have been re-proposed so that the public could comment and tell us whether we were getting it right.”
Several trade and lobbying groups, however, including the U.S. Chamber of Commerce and Business Roundtable, along with three other business groups, criticized the rule in a letter to regulators last week, DealBook reports.
“It is more important to get the Volcker Rule right than meet an artificially imposed deadline,” the groups said, according to DealBook.