Wall Street was in a frenzy on Thursday, following a leak late Wednesday night of language for the proposed “Volcker rule,” a regulatory measure named for former Fed Chairman Paul Volcker, who famously proposed a ban on proprietary trading by banks.
The 205-page draft of the memo, dated Sept. 30th, is said to have explained critical elements of the proposed rule. Following its leak, lawyers scrambled to interpret its meaning and regulators hinted that they may try to release the rule earlier than previously planned.
“Talk spread that the leak could prompt regulators to move more quickly to release an official version. A lobbyist for a large Wall Street bank assigned a staffer to continuously monitor the website of the Federal Reserve, which is helping draft the rule.”