The regulators are also set to reduce the amount of information the banks continually need to report to government supervisors -- cutting some categories and better tailoring others, the people said. The overall impact would be to make a very complex compliance exercise simpler and less expensive to execute.
But beyond easing compliance headaches, the proposal to change the banks’ ability to invest in funds may have the most significant business impact for the industry. The agencies are seeking to answer one of the chief concerns of Wall Street banks that the existing Volcker Rule’s exemptions from the funds limits are, “too narrowly drawn,” as the Bank Policy Institute said in a comment letter last year.
This article was provided by Bloomberg News.