WASHINGTON – Former Federal Reserve Chairman Paul Volcker is criticizing a decision to delay full implementation of a rule that bears his name and aims to curb banks' risky investments.
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The Fed said Thursday that it would delay until July 2017 the deadline by which U.S. banks will have to sell off potentially volatile holdings in private equity, venture capital and hedge funds.
In a statement, Volcker calls it "striking that the world's leading investment bankers, noted for their cleverness and agility in advising clients" need to take so long to reorganize their own activities.
Volcker says the banks' real aim may be to delay implementation of the law until they can get it changed. Congress passed the Volcker Rule in an overhaul of financial regulations after the 2008 financial crisis.