S&C Senior Chair Rodge Cohen Quoted in Financial Times on Changes to Volcker RuleAugust 22, 2019
S&C Senior Chair Rodge Cohen was quoted in a Financial Times article titled “Fears grow that softer Volcker rule will stoke Wall Street risk.” The article explores concerns that a recently-approved revamp of the Volcker rule will lead to an increase in risky behavior on Wall Street. Rodge, however, told the FT that the change to the rule does “not really roll back the fundamental restrictions.” Rather, he explains, the amended rule “reflect[s] a new willingness to look at compliance burdens.” Other analysts agree, saying that banks' trading operations will gain little economic benefit from the relaxed requirements due to the fact that costs associated with the Volcker rule have already been invested into reporting and compliance systems.
The revamped rule adopts many of the amendments that were first proposed by the Federal Reserve last year. S&C issued a memo highlighting the proposed changes at the time of their announcement—that memo may be viewed here.