A leak of the proposed “Volcker rule” language, posted to a website Wednesday night, had Wall Street lawyers scrambling to interpret its meaning Thursday, and regulators fuming.
The Wall Street Journal reports the 205-page draft of a memo, dated Sept. 30, laid out critical elements of the proposed Volcker rule.
As the newspaper notes, billions of dollars are at stake for big banks, which have been working for months to shape the rule aimed at curbing risky trading activities that played a part in the financial crisis.
“The leak left regulators fuming and opened a new front in Wall Street’s battle to soften the blow of the proposed rule,” according to the Journal. “The draft gave banking industry lobbyists several days to discuss it before Tuesday, when the Federal Deposit Insurance Corp. is scheduled to consider issuing a version for public comment.