Fed moves ahead on easing post-crisis 'Volcker Rule'

The Federal Reserve voted Wednesday to seek input on a proposal to simplify the Volcker Rule, a provision of the post-financial crisis reform law that blocked banks from trading on their own accounts.

The proposed alterations would tailor compliance based on the size of a firm’s trading assets, benefiting smaller institutions; clarify that firms trading within internal risk limits are conducting permissible market-making or underwriting activity; and limit the rule’s impact on foreign activities of foreign banks.