By a vote of 3-2 along party lines, the SEC voted to advance a proposal to revamp Volcker Rule regulations. SEC Chair Jay Clayton and Commissioners Michael Piwowar and Hester Peirce voted in favor of the proposal. Commissioners Kara Stein and Robert Jackson Jr. opposed it.
The proposal was developed in coordination with the Federal Reserve, the FDIC, the Office of the Comptroller of the Currency and the CFTC. The proposal is substantively identical to proposals that have been approved by all four of those agencies. In a statement, Mr. Clayton said that the proposal "seeks to simplify and tailor the [Volcker] rule to increase efficiency, streamline compliance with the rule, and allow banking entities to more efficiently provide services to clients, consistent with the requirements and purpose of the statute." In opposing the proposal, Ms. Stein argued that the proposal was "antithetical to what the law was written to accomplish."
Cadwalader partners Scott Cammarn and Mark Chorazak previously authored a memorandum analyzing the Federal Reserve proposal.
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