“The Volcker Rule may finally be out, but the process of understanding the intricacies of the complex regulation that bans the largest banks from making risky trades has only just begun.

“Financial institutions and their respective lawyers are poring over the 71-page rule, in addition to the 800-plus pages of supplementary materials, to determine how they will comply with it when it will rely so heavily on examiners’ subjectivity.

“The controversial ban drafted by the five regulatory agencies is intended to raise a wall between proprietary trading and market-making activities at commercial banks.  But regulators were careful to avoid drawing bright lines and setting explicit limits, introducing numerous gray areas with ample room for judgment.”

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