Rep. Carolyn B. Maloney (D-NY), senior member of the House Financial Services Committee, today released the response to her request of the Office of the Comptroller of the Currency last month to enumerate which banks regulated by them have begun to unwind their proprietary trading operations.
"The Office of the Comptroller of the Currency has confirmed in their letter to me that six of the country's largest institutions have already begun voluntarily winding down their proprietary trading desks in anticipation of implementation of the Volcker Rule," Maloney said. "These institutions are Citibank, JP Morgan Chase, Bank of America, Wells Fargo, and PNC Bank.
"This is a tangible sign that many large banks have recognized the validity of the Volcker Rule and the risk in trading for their own gain at the same time they are working for their customers' benefit. The spinoff of proprietary trading returns them to the principle mission of serving their customers first and foremost. I applaud these institutions who are not waiting for the final rules but who recognize that Dodd-Frank is the law of the land."
The Volcker Rule prohibits depository institutions from investing their own funds in order to make a profit. Maloney made the request of Comptroller Curry at the June 19, 2012 hearing of the Financial Services Committee titled, "Examining Bank Supervision and Risk Management in Light of JPMorgan Chase's Trading Loss".