The Volcker Rule

The Volcker Rule is a regulation that restricts banks from making certain risky investments with their own money, especially in activities like proprietary trading and investing in hedge funds or private equity funds. Its goal is to reduce risky behavior that could threaten the stability of the financial system. By limiting these activities, the rule aims to prevent banks from taking on excessive risk that could lead to financial crises, while still allowing them to serve their customers and support economic activity.