Noting that “the agencies still have work to do” to reform the Volcker Rule, FDIC Chairman Jelena McWilliams today emphasized that greater clarity is needed about which activities are covered by the rule.
In remarks at an international banking conference in Washington, D.C., McWilliams noted that in particular, “we need to right-size the rule’s extraterritorial scope while also minimizing competitive inequities between the U.S. banking entities and their foreign counterparts.” She added that the Volcker Rule should not prohibit activities that are not governed by U.S. rules, and that the FDIC will consider ways to simplify the current rule’s requirements for foreign funds.
“We have to provide more certainty to regulated entities and improve how we define what types of trading are prohibited and what types of funds are within the scope of the rule so that both bankers and supervisors have clear rules of the road,” she said.
