Volcker Rule Costs Banks $1 Billion, U.S. Government Says – Silla Brush (Bloomberg)

October 28, 2011

“The Dodd-Frank Act’s ban on proprietary trading and limits on hedge-fund investments will cost U.S. national banks about $1 billion for compliance and capital, according to a government estimate. The Volcker rule, proposed by the Federal Reserve, Federal Deposit Insurance Corp. and two other regulators this month, would result in $917 million in capital costs for the banks, according to the Sept. 7 impact analysis conducted by the Office of the Comptroller of the Currency. … ‘Only $50 million of these costs are these kinds of costs of government regulation,’ said Marcus Stanley, policy director for Americans for Financial Reform, a coalition of 250 groups including the AFL-CIO labor group and AARP. The cost ‘is very small compared to potentially making trillions of dollars in assets safer,’ he said in a telephone interview.” Click here for more.