Volcker Rule
His legislation would also repeal Dodd-Frank’s heightened standards for systemic institutions and its ban on proprietary trading, known as the Volcker rule. Campbell said that with additional capital requirements, a ban on proprietary trading would be unnecessary.
The Federal Reserve and the Federal Deposit Insurance Corp. are also weighing similar proposals. The two regulators are holding preliminary discussions on a rule that would require holding companies for the largest U.S. banks to maintain a minimum amount of long-term debt.
Tarullo said in a Dec. 4 speech in Washington that a minimum long-term debt rule “could lend greater confidence that the combination of equity owners and long-term debt holders would be sufficient to bear all losses at the firm.”
Campbell said he plans to introduce his bill tomorrow.