Posts Tagged ‘banking’

Volcker Rule

Volcker Rule  福克规则

The Volcker Rule is a specific section of the Dodd–Frank Wall Street Reform and Consumer Protection Act originally proposed by American economist and former United States Federal Reserve Chairman Paul Volcker to restrict United States banks from making certain kinds of speculative investments that do not benefit their customers. Volcker argued that such speculative activity played a key role in the financial crisis of 2007–2010. The rule is often referred to as a ban on proprietary trading by commercial banks, whereby deposits are used to trade on the bank’s personal accounts, although a number of exceptions to this ban were included in the Dodd-Frank law. The rule’s provisions are scheduled to be implemented as a part of Dodd-Frank on July 21, 2012.

Volcker Rule-福克规则是(Dodd-Frank)多德-法兰克华尔街改革和消费者保护法的特定部分,最初是由美国经济学家,前美国联邦储备委员会主席(Paul Volcker)保罗福克提出来限制美国银行某些对客户无益的投机性投资。福克辩说这种投机活动在2007-2010年的金融危机里是要角。该规则通常是指禁止商业银行的专有交易,即使用银行的个人账户存款作交易,虽然Dodd-Frank法里包含了这一禁令的一些例外状况。这个规则的条件原定在2012年7月21日当作Doo-Frank法的一部份实施。


Contents  目录

·      Background 背景

·      Proposal 建议

·      Implementation 实施

·      Historical antecedents 历史性前例

·      See also 另见


Background  背景

Volcker was appointed by President Barack Obama as the chair of the President’s Economic Recovery Advisory Board on February 6, 2009. President Obama created the board to advise the Obama Administration on economic recovery matters. Volcker argued vigorously that since a functioning commercial banking system is essential to the stability of the entire financial system, for banks to engage in high-risk speculation created an unacceptable level of systemic risk. He also argued that the vast increase in the use of derivatives, designed to mitigate risk in the system, had produced exactly the opposite effect.



Proposal  提议

The Volcker Rule was first publicly endorsed by President Obama on January 21, 2010. The proposal specifically prohibits a bank or institution that owns a bank from engaging in proprietary trading that isn’t at the behest of its clients, and from owning or investing in a hedge fund or private equity fund, as well as limiting the liabilities that the largest banks could hold. Under discussion is the possibility of restrictions on the way market making activities are compensated; traders would be paid on the basis of the spread of the transactions rather than any profit that the trader made for the client.

福克规则在2010年1月21日由奥巴马总统首度公开批准。该提案明确禁止银行或拥有银行的机构从事自营不是客户基本要求的专有交易,也禁止拥有或投资在对冲基金或私人股权基金里,还限制了最大家银行的债务。正在讨论的包括限制市场收费活动的可能性; 交易商将以一篮子交易的基础去收费,而不是根据他们为客户赚取的利润去收费。

On January 21, 2010, under the same initiative, President Obama announced his intention to end the mentality of “Too big to fail.”

2010年1月21日,在同样的倡议下,奥巴马总统宣布他打算结束“ 大到不能倒” 的心态。

In a February 22, 2010 letter to The Wall Street Journal, five former Secretaries of the Treasury endorsed The Volcker Rule proposals. As of February 23, 2010, the US congress began to consider a weaker bill allowing federal regulators to restrict proprietary trading and hedge fund ownership by banks, but not prohibiting these activities altogether.


Senators Jeff Merkley, Democrat of Oregon, and Carl Levin, Democrat of Michigan, introduced the main piece of the Volcker Rule – its limitations on proprietary trading – as an amendment to the broader Dodd-Frank financial reform legislation that was passed by the United States Senate on May 20, 2010. Despite having wide support in the Senate, the amendment was never given a vote. When the Merkley-Levin Amendment was first brought to the floor, Senator Richard Shelby, Republican of Alabama, objected to a motion to vote on the amendment. Merkley and Levin responded by attaching the amendment to another amendment to the bill put forth by Senator Sam Brownback, Republican of Kansas. Shortly before it was due to be voted upon, Brownback withdrew his own amendment, thus killing the Merkley-Levin amendment and the Volcker Rule as part of the Senate bill.

(Oregon)俄勒冈州的民主党参议员Jeff Merkley和(Michigan)密歇根州的民主党参议员Carl Levin介绍了福克规则的主要部份-也就是自营交易的限度-作为更广泛的,在2010年5月20日由参议院决议通过的Dodd-Frank金融改革法案中的修正案。尽管修正案在参议院获得广泛支持,但却没有投票表决。当Merkley-Levin修正案首次提出来时,(Alabama)阿拉巴马州的共和党参议员Richard Shelby反对要对修正案进行表决的提议。Merkelay和Levin回应,把这个修正案附加在另一个由(Kansas)堪萨斯州参议员Sam Brownback提出的修正案之上。就在投票表决的前一刻,Brownback撤回自己的修正案,从而扼杀了这个法案中的Merkley-Levin修正案和福克规则部份。

Despite this vote, this proposal made it into the final legislation when the House-Senate conference committee passed a strengthened version of the rule that included the language prepared by Senators Merkley and Levin. The original Merkley-Levin amendment and the final legislation both covered more types of proprietary trading than the original rule proposed by the administration. It also banned conflict of interest trading. Senator Levin commented on the importance of that aspect: “We are also pleased that the conference report includes strong language to prevent the obscene conflicts of interest revealed in the Permanent Subcommittee on Investigations hearing with Goldman Sachs. This is an important victory for fairness for investors such as pension funds and for the integrity of the financial system. As the Goldman Sachs investigation showed, business as usual on Wall Street has for too long allowed banks to create instruments which are based on junky assets, then sell them to clients, and bet against their own clients by betting on their failure. The measure approved by the conferees ends that type of conflict which Wall Street has engaged in.”


However, conferees changed the proprietary trading ban to allow banks to invest in hedge funds and private equity funds at the request of Senator Scott Brown (R-Mass.), whose vote was needed in the Senate to pass the bill. Proprietary trading in Treasurys, bonds issued by government-backed entities like Fannie Mae and Freddie Mac, as well as municipal bonds is also exempted.

然而,与会者改变了自营交易的禁令,允许银行投资在对冲基金和私募股权基金上,因为是参议员Scott Brown要求的(R-Mass.马塞住塞州),参议院需要他的票来表决通过该法案。自营买卖国债,政府支持的个体如房利美(Fannie Mae)和房地美(Freddie Mae)发行的债券和市政府的债权也得到豁免。

Since the passage of the Financial Reform Bill, many banks and financial firms have indicated that they don’t expect The Volcker Rule to have a significant impact on their profits.



Implementation  实施

Public comments to the Financial Services Oversight Council on how exactly the rule should be implemented were submitted through November 5, 2010. Financial firms such as Goldman Sachs, Bank of America, and JPMorgan Chase & Co. posted comments expressing concerns about the rule. Republican representatives to Congress have also expressed concern about the Volcker Rule, saying the rule’s prohibitions may hamper the competitiveness of American banks in the global marketplace, and may seek to cut funding to the federal agencies responsible for its enforcement. Incoming Chairman of the House Financial Services Committee, Representative Spencer Bachus (R-Alabama), has stated that he is seeking to limit the impact of the Volcker Rule, although Volcker himself has stated that he expects backers of the rule to prevail over such critics.

2010年11月5日,公众对于金融服务监督委员会应该如何实施这些规则提呈了评论。金融机构如高盛,美国银行,摩根大通公司发表评论表示关注这个规则。国会的共和党代表也对福克规则表示担忧,认为规则的禁令可能会阻碍美国银行在全球市场的竞争力,可能会削减负责执法的联邦机构的经费。即将就任的众议院金融服务委员会主席,现代表Spencer Bachus(R-Alabama阿拉巴马州)声明,他要限制福克规则的冲击力,虽然福克本人也表明,他预计该规则的支持者会战胜批评者。

Tom McMahon, head of the progressive lobbying group Americans for Progressive Change, responded to comments by Republican leaders by saying “It is truly astounding that less than a day after winning control of the people’s House of Representatives, Republican leaders are already hard at work doing the business of big Wall Street banks.”

Tom McMahon这位美国持续改变的持续游说团头头回应共和党领袖的评论说:“真的很惊人,赢得人民的众议院的控制权之后不到一天时间,共和党领导人就已经努力在做华尔街大型银行的生意。”

Regulators presented a proposed form of the Volcker Rule for public comment on October 11, 2011, which was approved by the SEC, The Federal Reserve, The Office of the Comptroller of the Currency and the FDIC. The proposed regulations were immediately criticized by banking groups as being too costly to implement, and by reform advocates for being weak and filled with loopholes. On January 12, 2012 CFTC became the final major regulator to vote in favor of the bill.


Volcker himself stated that he would have preferred a simpler set of rules: “I’d write a much simpler bill. I’d love to see a four-page bill that bans proprietary trading and makes the board and chief executive responsible for compliance. And I’d have strong regulators. If the banks didn’t comply with the spirit of the bill, they’d go after them.”


Regulators have given the public until February 13, 2012 to comment on the proposed draft of the law. Under the Dodd-Frank financial reform bill, the regulations go into effect on July 21, 2012.



Historical antecedents 历史性前例

The Volcker Rule has been compared to, and contrasted with, the Glass–Steagall Act of 1933.[28] Its core differences from the Glass–Steagall Act have been cited by scholars as being at the center of the rule’s identified weaknesses.



See also  另见

  • 2008–2010 bank failures in the United States。2008-2010年美国的银行倒闭
  • 2008–2009 Keynesian resurgence。2008-2009凯恩斯主义的回潮
  • Brown–Kaufman amendment 。Brown-Kaufman的修正案

Categories  分类

  • Systemic risk 系统性风险
  • Financial terminology 金融术语
  • Financial regulation in the United States 美国的金融监管

—— END ——


Source > Wikipedia at

Translated by > BlogHost — hkTan

Word Count > approx. 1370 words in English


%d bloggers like this: