All five regulatory agencies voted to approve the Volcker Rule on Tuesday, approving the measure after a long delay. The new rule puts in place measures regarding market making and compensation arrangements.
The Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve Board both unanimously approved the measure. The Securities and Exchange Commission (SEC) voted to approve the rule 3-2. The Commodity Futures Trading Commission (CFTC) approved the rule 3-1, and Comptroller of the Currency Thomas Curry approved the rule as well. Comptroller Curry is the organization’s only voting member.
The Wall Street Journal noted that the Federal Reserve Board also approved “an extension to give banks until July 2015 to comply with the rule, though firms will be expected to make ‘good faith’ efforts to get into compliance earlier.”
“The ultimate effectiveness of the rule will depend importantly on supervisors, who will need to find the appropriate balance while providing feedback to the Board on how the rule works in practice,” said Federal Reserve Chairman Ben Bernanke in a statement ahead of the Fed’s vote.
Read more about the votes online from the Wall Street Journal.