After a four-month lobbying blitz led by firms including Goldman Sachs Group Inc., JPMorgan Chase & Co. (JPM) and Credit Suisse Group AG (CS), there are signs that the fight over the Volcker rule may be shifting in Wall Street’s favor.
U.S. regulators and lawmakers are signaling they’re receptive to delaying and revising their plan, named for the former Federal Reserve Chairman Paul Volcker, to stop banks from making speculative trades on their own accounts. Representative Barney Frank, a Massachusetts Democrat and co-author of the 2010 law mandating the ban, urged regulators last week to simplify their first draft, while a bipartisan group of senators proposed pushing back its effective date.
Banking executives have long seen the Volcker rule as one of the most threatening parts of the Dodd-Frank regulatory overhaul, an assault on a lucrative line of business. To make their case in Washington, banks and trade associations have been pressing a coordinated campaign to get regulators from five federal agencies to scale back the draft of the proprietary- trading rule issued in October, according to public and internal documents and interviews. They recruited money managers, industrial companies, municipal officials and foreign governments to their side.