Volcker Compliance-responsibility Aspect Splits Legal Opinion

April 17,2012

Michael W. Stocker comments on the way the Volcker rule will be implemented, and whether or not the public attestation rule will be adopted

But Mike Stocker, a New York-based partner at law firm Labaton Sucharow, is not so sure. He argues the inter-agency competition in the US surrounding the Volcker rule means some of the regulatory agencies will have more influence than others when the final rules come out, and this is likely to lead to the requirement disappearing.

"The Federal Deposit Insurance Corporation (FDIC) thought it was a good idea, and the Federal Reserve has largely not thought it a good idea," he says. "This led to the proposal of having a requirement for these kinds of certifications being floated last year without being made part of any kind of rule. We're now in a period where the agencies are all assessing the responses they got in the request for comment for this joint rule-making. In the end, most bets are that it's the Fed that will have the greatest influence on the way the Volcker rule in general will be implemented, and probably specifically on whether or not the public attestation rule will be adopted – which leads me to think it will not be."