Republican house representative Spencer Bachus is asking investors and industry professionals to offer ideas on how to formulate “a less burdensome legislative alternative to the Volcker Rule”.
A 7 September deadline was set for stakeholders to respond to the request for comment. The deadline is designed to provide members of the Financial Services Committee, which is chaired by Bachus, the opportunity to evaluate the comments and legislative recommendations in preparation for a hearing on the rule that is being planned for the fall.
The Volcker rule, which US regulators are expected to release final language on in the coming months, restricts US banks and their holding companies from significant private equity and real estate investment.
Sources say Bachus has a slim chance of proposing any measures that would become law by year end, but introducing legislation would provide the rule's critics the opportunity to offer revisions. Non-US banks have already expressed their frustrations in the rule's ability to reach across US borders in preventing banks from sponsoring certain foreign private funds.
In its current form, the rule would result in “devastating repercussions” to the economy, said Bachus in a statement. He added: “Our committee has conducted its oversight of the Dodd-Frank Act by seeking out and listening to those who are affected by its regulations. We’ll do the same in this process of developing a better legislative alternative to the Volcker Rule.”
Those wishing to submit legislative recommendations can do so by emailing them to the Committee at firstname.lastname@example.org.