The Volcker Rule is a financial regulation that restricts the ways banks can invest, specifically limiting their ability to engage in proprietary trading and owning hedge funds or private equity funds. It aims to promote financial stability by reducing excessive risk-taking in the banking sector, especially in light of the 2008 financial crisis. This rule is part of the Dodd-Frank Wall Street Reform and Consumer Protection Act and reflects a shift towards greater oversight of financial institutions to protect consumers and the economy.
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