Federal regulatory agencies OK changes to 'Volcker rule'

WASHINGTON (AP) - The Federal Reserve and four other regulatory agencies have given final approval to changes in the "Volcker rule" passed after the 2008 financial meltdown to crack down on trading excesses that contributed to the crisis.

The changes were supported by the banking industry, which felt that the original rule seeking to prevent banks from speculative trading with government-insured deposits was too restrictive. But they were opposed by Wall Street watchdog groups and the rule's namesake, former Fed Chairman Paul Volcker.

Fed board member Lael Brainard issued a rare dissent to the final rule. She said "it weakens the core protections against speculative trading within the banking federal safety net."

The five agencies said the new rule would take effect on Jan. 1 with banks given a year to comply.