WASHINGTON — The chairman of the House Financial Services Committee has asked financial industry participants and members of the public for less burdensome legislative alternatives to the Volcker Rule.
“If regulators implement the Volcker Rule in its current form, the repercussions will be devastating to our economy. It will undermine our nation’s ability to compete and make it harder for Main Street businesses to raise capital so they can grow and create jobs.” Rep. Spencer Bachus, R-Ala., said in a release. “Therefore, we must consider legislative alternatives that will not stifle economic growth and job creation.”
Bachus asked for recommendations to be submitted by Sept. 7. Market participants can email their suggestions to email@example.com., he said.
The committee said it plans to hold a hearing on the rule sometime this fall, Bachus said.
The Volcker Rule, which was mandated by the Dodd-Frank law and is being finalized by regulators, would restrict banks from engaging in proprietary trading and from sponsoring hedge funds or private equity funds.
Muni market participants have warned for months that the rule, as currently written, could divide the muni market by exempting counties and local governments, but not public agencies and authorities, such as turnpike, housing and sewer authorities.
Market participants have said the rule could also boost issuers’ costs by inhibiting banks from underwriting and trading some bonds.