Mnuchin Said to Start Review That Could Ease Volcker Rule’s Bite
- Treasury directs regulators to examine key trading restriction
- U.S. agencies expected to look at market-making definition
Treasury's Mnuchin Said to Push Volcker Rule Review
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The Trump administration is quietly helping Wall Street in its campaign to chip away at the toughest trading restriction imposed on banks after the financial crisis.
At a closed-door meeting in Washington on Monday, Treasury Secretary Steven Mnuchin directed five key agencies to re-examine what’s permitted under the Volcker Rule, said two people familiar with the matter. The provision, widely despised on Wall Street, bars banks from wagering on markets with their own capital. Mnuchin’s action could lead to changes that give banks more flexibility to trade without running afoul of the rule.