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It prohibits banks from engaging in proprietary trading.
from engaging in proprietary trading—making these big bets on one side or the other.
from engaging in proprietary trading — making these big bets on one side or the other.
Of course banks can take plenty of risks without engaging in proprietary trading.
One would ban banks that use federal deposit insurance and the Federal Reserve's discount window from engaging in proprietary trading — making market bets using their own money.
The Volcker Rule was part of the Dodd-Frank Act that Congress passed last year, barring banks from engaging in "proprietary trading".
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trying to hedge, or engage in proprietary trading?
Few banks engage in proprietary trading to any great degree, their lobbying groups insist.
That could allow banks to engage in proprietary trades under the guise of market making.
Financial institutions know when they are engaged in proprietary trading, but they can hide it well.
Under the new approach, commercial banks would no longer be allowed to engage in proprietary trading, using customers' deposits and borrowed money to carry out these trades.
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