The Presidential Daily Brief

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  1. Volcker Rule Would Hold CEOs Personally Accountable for Some Trades

    The Volcker Rule, a long-awaited provision of the 2010 Dodd-Frank Act, is slated to be voted on next week, and on Thursday U.S. Treasury Secretary Jacob Lew said that it would be implemented with ”CEO attestation.” That’s a victory for regulators and a move that could prompt banks to spin off stand-alone entities to engage in proprietary trading. The rule would prevent banks from trading with their own capital such that deposits are put at risk. Since 2011, regulators have been pushing for it to include a provision that would hold bank CEOs directly accountable for making sure such trades do not occur, a provision that Wall Street has strongly opposed.

    Source: WSJ, Bloomberg

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