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Volcker Rule, Dodd-Frank Wall Street Reform Act, financial markets, financial reform, systemic risk, derivatives, financial industry, Basel Committee on Banking Supervision, Financial Stability Board


As the world struggles to emerge from the Global Financial Crisis the vision of a harmonious framework of global financial regulation seems as distant as ever. Important progress made by international committees such as the Basel Committee on Banking Supervision and the Financial Stability Board notwithstanding, there seem to be increasing signs of unilateral, extraterritorial action by major jurisdictions, including the United States. This paper reviews the framework created by the US financial reforms, in particular anti money laundering provisions, the Volcker Rule and the proposed OTC derivatives margin requirements, and considers some of the dilemmas presented by modern global banking and its concomitant regulation. The conclusion is that we are likely to see more regional reforms that are not necessarily uniform, and that this might not be a bad result, given the complexity of the financial markets and the need to respond flexibly to evolving circumstances.

Library of Congress Subject Headings

Risk assessment, Risk management, Dodd-Frank Wall Street Reform and Consumer Protection Act, Financial Stability Board, Derivative securities, Financial institutions, Money market, Basle Committee on Banking Supervision, Public finance, Banking law, United States