In remarks at the Institute of International Bankers yesterday in Washington, D.C., Dan Gallagher, a Republican commissioner at the SEC, expressed concern over the Volcker Rule.
According to a Reuters article, in reference to the large number of comments received, Gallagher said, “These comments provide powerful evidence that the benefits the proposed rule was designed to provide may come at an unacceptably high cost….” and that “We must avoid regulatory hubris and should not regulate – particularly where the changes are so novel or comprehensive – with the belief that we completely understand the consequences of the regulations we may impose.”
The article also noted, “This marks the second time that a U.S. financial market regulator has publicly called for potentially scrapping the complicated Volcker proposal that was released in October, in hopes of crafting a more workable draft,” referring to similar comments made by Commissioner Paredes last month in Washington.
Additionally, in testimony before the House Financial Services Committee, Federal Reserve Chairman Ben Bernanke said last week that a final rule will likely not be ready by the July deadline set by Dodd-Frank.
The full Reuters article can be found here.
For BDA’s comments on the Volcker Rule proposal, click here.
