Wall Street is in for some changes soon, as U.S. regulators are expected to finally approve a stricter version of the Volcker rule, which will create more restrictions on what trading banks can actually do with their funds. The Volcker rule, named after Paul Volcker, former Federal Reserve chairman, was originally created as an overhaul of financial regulation known as Dodd-Frank to make the financial system safer and more controlled.
The new rule, which is a finished version of the trading curbs, was first proposed by President Obama back in 2010 and will be voted on by five agencies on or around Dec. 10. According to a recent MarketWatch report, the votes will result in tighter restrictions on certain trading activities that go beyond what regulators had agreed to just a few weeks ago. Since then, regulators have been locked in tense negotiations that threatened to upend the provision.