( This article originally appeared on The Hill)
A leading House Democrat is pressing financial regulators over a provision of the Dodd-Frank law that bans proprietary trading.
In a letter sent Monday to the Federal Reserve, Securities and Exchange Commission (SEC), Federal Deposit Insurance Corp. (FDIC) and other agencies, Rep. Carolyn Maloney (D-N.Y.) requests information about the implementation of the Volcker Rule.
The Volcker Rule blocks large banks from speculative trading with money from their customers that is insured by the federal government.
These banks must also report “quantitative trading data.”
Maloney asked whether the Volcker Rule has contributed to “significant changes in banks’ trading activities” or a “meaningful difference in overall risk levels.”
“As you know, the Volcker Rule prohibits U.S. banking entities from engaging in proprietary trading, while permitting legitimate market-making and hedging activities,” Maloney wrote.