The Volcker Rulelimited banks' abilities to own, invest, or sponsor private equity funds, proprietary trading operations, or hedge funds for their own profit, unrelated to serving their customers. The Volcker Rule came about as part ofThe Dodd-Frank Actthat altered the Federal Reserve's ability to extend emergency liquidity to non-depository institutions.

Evaluate policy innovations in the regulation of financial intermediaries that are aimed at decreasing systemic or systematic risk. Present your understanding of how these policy innovations could have an impact on individual firms across the economy.

Discuss whether you believe these actions are compatible or incompatible with Bagehot's dictum as it has been interpreted by the Federal Reserve. Do you believe that these policy innovations are beneficial to firms generally?

As you respond to peers, evaluate their statements. Are there other considerations that they may have missed? What is the broader context of these innovations? Will it affect all firms similarly?

Please see http://www.sifma.org/issues/regulatory-reform/volcker-rule/overview/

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