In separate meetings, agencies will consider more proposed revisions to Volcker Rule

Additional revisions to the Volcker Rule – which generally prohibits banking entities from engaging in proprietary trading or investing – will be considered as proposed rules in separate meetings next week by the boards of the Federal Deposit Insurance Corp. (FDIC) and the Federal Reserve, both agencies announced Thursday.

Neither agency provided additional details on what changes will be proposed.

In addition to the Volcker Rule changes, the Federal Reserve will also consider a final rule to revise its “control framework” during its meeting set for 9:30 a.m. Thursday (Jan. 30). The rule, as proposed last spring, addresses determination of when a firm has obtained control of a bank and must register as a bank holding company. When proposed, Fed Chair Jerome H. (“Jay”) Powell said “providing all stakeholders with clearer rules of the road for control determinations will responsibly reduce regulatory burden,” which, he indicated, will make it “easier for banks, particularly community banks, to raise capital to support lending and investment.”

The FDIC will meet the same day, beginning at 10 a.m. with no items other than the Volcker Rule proposed revisions on its discussion agenda.

FDIC Sunshine Act meeting notice (Jan. 30, 2020)

Federal Reserve System Government in the Sunshine meeting notice (Jan. 30, 2020)