Volcker Rule

The Volcker Rule is a financial regulation that restricts banks from making risky investments with their own money, specifically by prohibiting them from engaging in proprietary trading. It was established as part of the Dodd-Frank Act after the 2008 financial crisis to protect consumers and stabilize the financial system. The rule aims to ensure that banks focus on traditional lending and investing rather than speculative activities that could lead to significant losses, thereby enhancing overall economic safety and reducing the risk of future financial crises.