(Reuters) – “Opponents of the Volcker rule, which bans U.S. banks from proprietary trading, are exploring whether regulators violated two obscure laws that require them to study the costs to business, a move that could lead to a possible legal challenge.”
“The U.S. Chamber of Commerce says bank regulators appear to have failed to meet their obligation to fully study the Volcker rule’s cost to the financial industry and the economy.”
“Lawyers for the business lobby group are combing through the 1995 Unfunded Mandates Reform Act, which the Office of the Comptroller of the Currency (OCC) has said directs it to assess the economic impact of any new rule that will cost the government or private sector $100 million or more.”
“The lawyers are also looking at the Riegle Community Development and Regulatory Improvement Act, which requires the Federal Reserve, the Federal Deposit Insurance Corp and the OCC to weigh “administrative burdens” on banks, including small banks and their customers, against the rule’s benefits.”
Read full Reuters article here.