The “Volcker Rule,” a key component of the Dodd-Frank Wall Street Reform and Consumer Protection Act, prohibits any “banking entity” from engaging in proprietary trading, or sponsoring or investing in a hedge fund or private equity fund. It also requires systemically important nonbank financial companies to carry additional capital and comply with certain other quantitative limits on such activities, although it does not expressly prohibit them.

Below is a link to a brief Wall Street Journal video interview with Nora M. Jordan, head of Davis Polk’s Investment Management Group, conducted this week after the President signed the legislation. In the interview, Jordan discusses implications of the Volcker Rule, including limits that will be placed on banks’ fund operations, the difference in application between U.S. and foreign banks, the ambiguities in the rule and the timeline for compliance.

Click here to access the WSJ video interview.