The Volcker Rule prohibits banks from sponsoring or holding an ownership interest in a hedge fund or a private equity fund.

Question

Quizplus · Accepted Answer

The Volcker Rule, part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, restricts banks from engaging in certain speculative investments, including sponsoring or holding ownership interests in hedge funds or private equity funds, to protect against conflicts of interest and reduce systemic financial risks.

The Volcker Rule Prohibits Banks from Sponsoring or Holding an Ownership