Exploring the Volcker Rule’s Effect on Banks

WSJ Video Interview

July 23, 2010

The “Volcker Rule,” which is 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 of Nora M. Jordan, head of Davis Polk’s Investment Management Group, which was conducted this week after the President signed the legislation. Ms. 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.



If you have questions regarding this newsflash, please contact any of the lawyers listed below or your regular Davis Polk contact.

Robert L.D. Colby 202 962 7121
Randall D. Guynn212 450
Nora M. Jordan212 450
Arthur S. Long212 450
Annette L. Nazareth202 962
Margaret E. Tahyar212 450
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