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Volcker Rule Rewrite Said to Drop Trading Burden on Banks - ABI

Wall Street is poised to get a big reprieve from the Volcker Rule, as U.S. agencies prepare to scrap a restrictive presumption that most short-term trades violate the post-crisis regulation, Bloomberg News reported. In a much-anticipated overhaul, the Federal Reserve and other regulators are planning to drop an assumption written into the original rule that positions held by banks for less than 60 days are speculative — and therefore banned. Instead, banks would have leeway to conclude that their trades comply with the rule, putting the onus on regulators to challenge such judgments. The change is one of many that regulators appointed by President Donald Trump are expected to propose in the coming weeks when they unveil their revamp, known internally as “Volcker 2.0,” said the people who requested anonymity because it hasn’t been made public.

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