Central Banks

Wednesday, January 29, 2020 - 15:11

MNI TRANSCRIPT: Fed to Vote on "New Part" of Volker Rule


WASHINGTON (MNI) - The following is the portion of a transcript from Federal Reserve Chairman Jerome Powell's press conference after the FOMC meeting Wednesday:

Q: Is the Fed going to vote on changes to the Volker rule in banks investing in venture capital funds and what can you tell us about what the Fed is considering and why make those changes?

A: Sure, so we will be looking tomorrow and voting on a new part of the existing Volker Rule and that is the covered fund provisions of the rule and we'll be making a bunch of provisions that we believe are faithful to both the letter and the spirit of the law. We're going to put those proposals out for public discussion, and we're going to listen carefully as we always do to public comments on those proposals. Again, we believe that they will be, and you'll see them tomorrow, it will be public. I think we have a Board Meeting tomorrow to do that.

Q: Is this just the venture capital funds or are you also changing rules for hedge fun and private equity funds.

A: It's covered funds. It's not the proprietary trading part of the Volker but covered funds part.

Q: Is there a chance banks could take it and run and maybe get involved in mortgage backed securities again and risk investments?

A: You know, we think that what we're doing is very consistent with safety and soundness and absolutely consistent with the letter and spirit of the Volker Rule. We'll be getting comments from people and looking into that question and many others.

--MNI Washington Bureau; +86 (10) 8532-5998; email: ryan.hauser@marketnews.com

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