The Final Rule:
- Prohibits banking entities from engaging in proprietary trading, unless otherwise permitted by the Final Rule.
- Prohibits banking entities from acquiring or retaining any ownership interest in, or sponsoring, a hedge fund or private equity fund, except to the extent permitted by the Final Rule.
- Prohibits banking entities from engaging in a permitted activity if (i) it would involve a material conflict of interest or material exposure to high-risk trading strategies, or (ii) pose a threat to safety and soundness.
- Provides exemptions for certain permitted activities including, but not limited to, trading on behalf of customers, trading in government obligations, market-making activities, risk-mitigating hedging strategies, and organizing and offering a covered fund including limited investments in such funds.
- Provides exclusions from the definition of proprietary trading for certain activities subject to conditions.
- Provides exclusions from the definition of covered fund, including, but not limited to, loan securitizations, wholly owned subsidiaries, bank-owned life insurance, and public welfare investment funds.
FDIC-Supervised Banks (Commercial and Savings)
Board of Directors
Chief Executive Officer
Chief Financial Officer
Chief Risk Officer
Dodd-Frank Wall Street Reform and Consumer Protection Act
Bank Holding Company Act
Restrictions on Proprietary Trading and Certain Relationships with Hedge Funds and Private Equity Funds (PDF Help)
Fact Sheet: The Volcker Rule (PDF Help)
The Volcker Rule: Community Bank Applicability
Bobby Bean, Associate Director, Capital Markets Branch, at email@example.com or (202) 898-6888
Karl Reitz, Chief, Capital Markets Strategies, at firstname.lastname@example.org or (202) 898-6888
Michael Spencer, Senior Policy Analyst, at email@example.com or (202) 898-6888
FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's Web site at http://www.fdic.gov/news/news/financial/2013/index.html.
To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/index.html.
Paper copies may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).