A former federal banking regulator is pushing lenders to look into challenging the interpretation of a new law in such a way as to limit the application of the Volcker Rule to all the six largest banks in the country, Yahoo Finance reported. The report said Keith Noreika, previously the acting Comptroller of the Currency, is pushing banks to look into taking the issue to court. The text of what's popularly called the Crapo bill, designed to apply to community banks, has a number of double negatives that cloud the meaning of the bill. If successfully challenged, large banks such as US Bancorp USB, -1.11% PNC Financial Services PNC, -2.13% Capital One Financial COF, -2.29% and Bank of New York Mellon BK, -0.27% would be freed of the Volcker Rule that limits proprietary trading.

Volcker Rule definition:

he rule was originally proposed by American economist and former United States Federal Reserve Chairman Paul Volcker to restrict United States banks from making certain kinds of speculative investments that do not benefit their customers.[2] Volcker argued that such speculative activity played a key role in the financial crisis of 20072008. The rule is often referred to as a ban on proprietary trading by commercial banks, whereby deposits are used to trade on the bank's own accounts, although a number of exceptions to this ban were included in the Dodd-Frank law.[3][4]

The rule's provisions were scheduled to be implemented as part of the Dodd-Frank Act on July 21, 2010,[5] with preceding ramifications,[6] but were delayed. On December 10, 2013, the necessary agencies approved regulations implementing the rule, which were scheduled to go into effect April 1, 2014.[7]

On January 14, 2014, after a lawsuit by community banks over provisions concerning specialized securities, revised final regulations were adopted.[8] The rule came into effect on July 21, 2015.[9] On August 11, 2016, several large banks requested a 5-year delay to exit illiquid investments.[10]

Caveat emptor I say.