On October 11, 2011, the Federal Deposit Insurance Corporation (FDIC) approved a proposed version of the so-called "Volcker Rule," a regulation that is part of the Dodd-Frank Act reforms.  Named after former Federal Reserve chief Paul Volcker, the proposed rule seeks to limit how banks may use their own accounts for "proprietary" trading, that is, trading for their own profit.  According to the proposed version of the rule, banks would still be allowed to own a 3 percent stake in hedge funds, make markets, and make risky bets for their clients.  However, the Volcker rule is certain to see many changes in the coming months, as the draft rule includes more than 100 questions for public comment.  The comment period is scheduled to end on January 12, 2012.  Thereafter, regulators will analyze the comments and draft a final rule, which could take months.

The current proposed rule was drafted after input by the FDIC, the Securities and Exchange Commission, the Office of the Comptroller of the Currency and the Federal Reserve Board of Governors.  ("Volcker Rule Gets FDIC Approval". CNNMoney, October 11, 2011).