Volcker Rule finally passed after 'long and arduous process'

[WASHINGTON] At two metres, Paul A Volcker struck an imposing figure as chairman of the Federal Reserve during the economically turbulent 1980s. But the banking rule named after him, approved on Tuesday, may not have the same sway over an unwieldy global financial system.

Five years after the financial crisis, US regulators on Tuesday ushered in a new era of oversight aimed at reining in Wall Street risk taking, voting to prevent big banks from trading for their own benefit.

In many ways, just getting the rule done was an important milestone in the authorities' efforts to overhaul the financial system. For starters, the rule was particularly taxing to write. It had to distinguish between trading that banks are allowed to do - to serve their customers and offset their own risks - from the prohibited trading done solely for their own profit.