What is considered the biggest change to financial regulation since the Great Depression of the 1930s?
The Dodd-Frank Wall Street Reform Act of 2010
What is the goal of the Volcker Rule?
Banking Institutions maintain healthy capitalization ratios
How does the Volcker Rule limit banking institutions?
Limits banking institutions from owning more than 3% of a hedge fund’s total ownership interest
Limits banking institutions from owning interests in hedge funds that exceed 3% of their Tier 1 Capital (Common Stock + Retained Earnings + non-redeemable; non-cumulative Preferred Stock)
What does the Volcker Rule require banking institutions to disclose?
Relationships with hedge funds must be fully disclosed to regulators