The Volcker rule stakes a claim for being among the most controversial and maligned creations of the Dodd-Frank Act. It was pitched as a remedy for the bad behavior by banks—before, during, and after the financial crisis of 2008.
The rule, named for former Federal Reserve Chairman Paul Volcker, is a ban on proprietary trading by federally insured banks that should otherwise be standard depository institutions rather than dip their toes into the world of Wall Street and its hedge funds.
