Former Federal Reserve Chairman Paul Volcker criticized Congress' attempt to delay provisions of the Dodd-Frank law rule that bears his name.On Wednesday, the House of Representatives voted down a bill that would have delayed a provision of the so-called Volcker rule that would have given banks until 2019 to comply with rules regarding collateralized loan obligations, a type of security backed by debt, often high-risk commercial loans.
Volcker previously criticized banks for not being able to comply with another part of the rule, which required banks to divest from hedge funds and private equity funds.
"I realize that lobbying is eternal, but instead of extending the compliance period, the Congress should focus on closing the remaining loopholes," Volcker said in a statement.
The provision failed to pass after a suspension of the rules that required a two-thirds majority to pass, but will likely receive another vote since only one Republican voted against the bill.
Supporters of the law have also voiced concerns that Republicans, who now control both the House and Senate, will try targeting Dodd-Frank through spending bills or through other important legislation.
This was the case with the terrorism risk insurance bill that passed the House Wednesday that included a provision on derivatives regulation