Regulators will bar banks from a brand of trading linked to JPMorgan Chase’s “London whale” debacle, The Wall Street Journal reports.
Language allowing the practice has been “expunged” from the Volcker Rule, a key provision of the 2010 Dodd-Frank Wall Street reform law expected to be unveiled next week, according to the newspaper.
Named for former Federal Reserve Chairman Paul Volcker, the rule would prohibit banks that get federal backing from engaging in risky speculative trading practices. The regulation, among hundreds required by the Dodd-Frank financial reform law, is designed to keep financial institutions from gambling with taxpayer money — a practice that helped cause the 2008 economic crisis.
Read the full Wall Street Journal story here.