Federal Reserve Could Soften Rules on Risky Trading
As you were. Federal regulators unveiled a proposal yesterday to ease a key portion of a 2010 law aimed at cracking down on dangerous betting by big banks. The Volcker Rule has long been criticized by Wall Street for hampering financial markets. Under the Fed’s proposal, entities like Goldman Sachs and JPMorgan Chase would have more freedom to buy and sell securities — highly profitable trades that also carry the potential for major losses. But regulators emphasized the change doesn’t mean a return to the free-wheeling pre-crisis days.