But recent changes to the Volcker Rule shouldn't revive prop trading
A consensus has emerged that the Volcker Rule “needs clarification and recalibration to eliminate burden on banks that do not present systemic risks”
The bank was fined US$136.9 million for deficiencies in its oversight of FX traders and US$19.7-million fine for “gaps” in its compliance program for the Volcker Rule
Small banks could benefit from the extension more than larger banks
Banks will now have until July 2017 to adhere to provisions for CLOs
The rule seeks to stop banks from taking the kind of trading risks that led to the 2008 financial crisis
Proposed rule would limit banks’ exposure to proprietary trading, private equity and hedge funds
Final version of controversial banking rule yet to be adopted
The proposed rule erects a barrier between the Canadian mutual fund industry and its Canadian clients, especially snowbirds
U.S. rule could adversely affect Canadian financial institutions, conflict with regulation