Volcker Rule takes effect
Banks could no longer engage in proprietary trading with customer deposits. The most fought-over provision of Dodd-Frank. Its implementation took five years of lobbying, amendment, and extended compliance timelines. A 2020 revision loosened several provisions.
The Volcker Rule's implementation timeline is a case study in regulatory lag inside regulation itself. Dodd-Frank passed in 2010. The rule took until 2015 to fully take effect. Banks had already reshaped their business models to the new constraints long before the rule text was final.
06 · Dodd-Frank
The risk was named in 1994. Brooksley Born, chair of the CFTC, warned that unregulated derivatives could threaten the financial system. She was overruled by Greenspan, Rubin, and Summers. In 2008 the thing she warned about happened. In 2010, two years after the crisis, Congress passed Dodd-Frank.
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