US extends Volcker rule comment period

Washington: US regulators announced on Friday they will give the public and the banking industry 30 more days to comment on a proposed framework to implement the controversial Volcker rule, which limits banks from trading with their own funds.

Banks and congressional Republicans, who are critical of the Volcker rule, have pushed regulators to provide more time for comments arguing the complexity of the issue demands it. Supporters of the proposal have said banks are just trying to stall implementation of the policy to water down its impact.

Regulators released in October a proposed framework for implementing the Volcker rule with a comment period that was set to close on January 13. On Friday, regulators announced that date is now being extended to February 13.

"The comment period was extended as part of a coordinated inter-agency effort to allow interested persons more time to analyse the issues and prepare their comments," the Federal Reserve, Securities and Exchange Commission, Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency said in a statement on Friday.

Two Republican members of the SEC said in a separate statement that the extension should have been longer.

"The 30-day comment period extension is insufficient given the complexities of the Volcker Rule proposal," Commissioners Daniel Gallagher and Troy Paredes said in statement.

The Volcker rule was one of the most intensely lobbied parts of the 2010 Dodd-Frank financial oversight law as it moved through Congress and those efforts have now shifted to the regulators. It would prevent banks that receive government backstops like deposit insurance from making risky trades in securities, derivatives and other financial products with their own funds. It was named for former Fed Chairman Paul Volcker, who championed the measure.