The Volcker Rule concerns the division between commercial and investment banking.
Posted by Bulwark Takes, Checked
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Bulwark TakesAug 21, 2026
The claim is a faithful paraphrase of the passage, which says the Volcker Rule concerns divisions between commercial and investment banking.
What was said
… He was They were mad about the Fed having policy too tight, and he said, Well, uh, the Volcker Rule is that you cut rates when, like, commodity prices are low. And I was like, that's definitely not what the Volcker Rule is. The Volcker Rule has to do with divisions between commercial and retail commercial and investment banking, and, like, things completely unrelated to anything related to inflation. And he would just, like, keep saying it, and I remember I had this one time when I sparred with him, and it's like, he just lies. …
Bulwark Takes · · from the transcriptPost →What we found
Supports. Cornell LII's Wex entry (2026) states the Volcker Rule attempts to reduce risk within banking institutions stemming from mixing investment banking and commercial banking.[2]
Supports. SEC Commissioner Kara Stein's 2015 remarks say Dodd-Frank put the traditional separation partially back in place by drawing a line between customer-focused banking and proprietary trading.[3]
Supports. NYU Stern's 2026 paper describes the Volcker Rule as the latest iteration of regulation of scope, following the commercial/investment bank separation of Glass-Steagall.[4]
Context. Reuters (2013) and the Fed and FDIC pages describe the rule mainly as a restriction on proprietary trading and hedge fund or private equity investments, rather than a structural split between commercial and investment banks, so the claim is a looser framing of the rule's operative provisions.[1][5][6]
Sources
6 sources: 1 fact-checker, 5 primary
- 1U.S. finalises Volcker rule, curbing Wall Street's risky tradesreuters.com · fact-checker · cited for: context
- 2Volcker Rule | Wex | US Law | LII / Legal Information Institutelaw.cornell.edu · primary source · cited for: supports
- 3The Volcker Rule: Observations on Systemic Resiliency ... - SEC.govsec.gov · primary source · cited for: supports
- 4[PDF] The Volcker Rule and Regulations of Scope | NYU Sternstern.nyu.edu · primary source · cited for: supports
- 5Volcker Rule | FDIC.govfdic.gov · primary source · cited for: context
- 6Volcker Rulefederalreserve.gov · primary source · cited for: context
Where this claim was made
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