Mnuchin Starting Review That May Ease Volcker; Noreika Says OCC Could Give Relief on Trading Ban

At a Financial Stability Oversight Council (FSOC) meeting on Monday, May 15th, Treasury Secretary Steven Mnuchin directed five key agencies to re-examine what is permitted under the Volcker Rule, according to Bloomberg. Mnuchin's action could lead to changes that give banks more flexibility to trade without conflicting with the Volcker Rule.

Bloomberg explains that Mnuchin's request, made at a meeting of the 15 agencies that compose the FSOC, indicates that the Secretary is not waiting for the results of the Administration's ongoing review of financial rules to start pursuing changes sought by the industry.

A working group on Volcker has been established by Munchin; the group is comprised of the agencies that wrote the rule.

Keith Noreika, Acting Comptroller of the Currency, said that the Office of the Comptroller of the Currency (OCC) could act on its own to give banks relief from the Volcker Rule trading ban, according to a recent Wall Street Journal article. Noreika said regulators need to do a better job of clarifying what trading activities are permitted under the rule. He suggested they could start by cataloging types of transactions or investments, then evaluating whether to grant regulatory exemptions for those activities.

If you would like to SFIG's Volcker Task Force, please contact Alyssa.Acevedo@sfindustry.org.

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