Feb. 24 (Bloomberg) -- The U.S. Securities and Exchange Commission should start over with a new proposal of the so- called Volcker rule that bans banks’ proprietary trading, said SEC Commissioner Troy Paredes.
“The most appropriate path forward from here would be a re-proposal,” Paredes, one of two Republicans on the five- member commission, said today during a Washington securities-law conference. The “excessive complexity” of the initial proposal and what he sees as potential harm to the global competitiveness of U.S. firms could be helped with a “fresh start,” he said.
Asked earlier this week whether about 15,000 comment letters will force regulators to re-propose this rule required by the Dodd-Frank Act of 2010, SEC Chairwoman Mary Schapiro said it depends on “how much the rule changes.” The statute -- which also must be approved by four other agencies, including the Federal Reserve and Federal Deposit Insurance Corp. -- is set to go into effect in July, and Schapiro said she doesn’t know whether the rulemaking will be complete by then.
“By any measure, a huge volume of comments has come in that we are obligated to digest thoughtfully,” Paredes said. “Significant revisions will most likely be needed.”
--Editors: Anthony Gnoffo, Gregory Mott
To contact the reporter on this story: Jesse Hamilton in Washington at firstname.lastname@example.org.
To contact the editor responsible for this story: Maura Reynolds at email@example.com