According to the FDIC, the Volcker rule, named for former Federal Reserve Chair Paul Volcker, is on track to be completed by year’s end. Mandated by the 2010 Dodd-Frank financial reform legislation, the Volcker rule is aimed at preventing financial institutions that receive government backstops from taking risky positions for their own benefit, instead of investing on behalf of customers. With intense lobbying from groups both inside and outside the financial industry, the Volcker rule has received considerable publicity regarding its potential effect on banks. Banking groups have argued that the rule could make it hard for banks to raise capital. Additionally, banks have made it known that any rule must contain an exemption for proprietary trading aimed to help the banks hedge their own risk. The breadth of any exemption for hedging is now under scrutiny after it was revealed in May that JPMorgan Chase & Co lost at least $5.8 billion due to a failed hedging strategy that put the bank into risky bets. After the Volcker rule is finalized and in place, banks will have until July 21, 2014 to fully comply. (“UPDATE 2 - Volcker Rule on Track for Completion by Year-End-FDIC Chief,” Reuters, September 14, 2012).