“Sens. Carl Levin and Jeff Merkley have been pressing regulators for more than three years to craft a version of the Volcker rule that carefully follows their vision for new bank trading restrictions as laid out in the 2010 Dodd-Frank law.

“Now they have an ally on the inside.

“Kara Stein, a former Senate aide who became a commissioner at the SEC in August, has reportedly been pressing her fellow regulators to craft a final version of the Volcker rule that tightly draws the exemption for hedging and that includes a requirement that Wall Street CEOs put in writing that their banks are following the proprietary trading ban — two issues the senators have emphasized. If the changes aren’t made, Stein could oppose the final rule, meaning it likely would not be approved by the SEC.”

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