The Federal Reserve Board laid out on Monday how U.S. banks can apply to take five more years to comply with the Volcker Rule, a reform emerging from the 2007-09 financial crisis that has received some of the harshest criticism from Wall Street.
The rule, intended to keep banks from speculating with their customers’ money, limits the amount of illiquid investments firms can hold. Big Wall Street banks have said they need more time to exit fund investments that are difficult to sell but no longer allowed by the 2010 Dodd-Frank Wall Street reform law.