“The question of which regulator will take the lead in enforcing the complex Volcker rule took center stage this week, as U.S. lawmakers voiced concern over the lack of clear leadership among the five agencies in charge of the statute.”
“In testimony before the House Financial Services Committee on Wednesday, the heads of the five agencies — the Federal Reserve, Office of the Comptroller of the Currency, Securities Exchange Commission, FDIC, and Commodities Futures Trading Commission – found themselves questioned repeatedly over which agency was at the helm.”
“‘Who’s in charge? I’ve yet to hear really who’s in charge,’ said Rep. Shelley Moore Capito, R-W.Va. ‘Nobody’s in charge. So nobody makes a decision. Or you make a decision over one another and then all of the sudden there’s three or four decisions that have been made. And how are the institutions supposed to react in the best interest of their client?’”
“Echoing Rep. Capito’s concerns, others focused on how exactly the agencies would resolve a dispute over trades that appeared to step over the line into proprietary trading.”
Read the full Reuters article by Henry Engler here.