Corporate Governance

Volcker Rule Looms Over Asset Management and Fund Activities of Financial Institutions

By Harvard Law School Program on Corporate Governance

The ?Volcker Rule? ? first introduced in the context of current financial reform legislation by the President in January ? looms large in the financial regulatory reform package approved by the Senate on May 20, 2010 (the ?Senate Bill?). As highlighted in this publication, fundamental questions remain regarding how the Volcker Rule would function in practice.

As addressed in greater detail below, if it becomes law, the Volcker Rule would:

• redraw existing boundaries on the types of trading activities that U.S. depository institution holding companies and non-U.S. banks with U.S. operations may conduct,
• significantly limit the fund-related activities that U.S. depository institution holding companies and non-U.S. banks with U.S. operations may conduct, and
• place a cap on M&A-related growth of large financial groups operating in the United States. [1]

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Full post as published by The Harvard Law School Corporate Governance Blog on June 26, 2010 (boomark / email).