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WASHINGTON (AP) — The Federal Reserve is preparing to ease a rule aimed at defusing the kind of risk-taking on Wall Street that helped trigger the 2008 financial meltdown.
The Volcker Rule, crafted by a bevy of regulators 4 1/2 years ago, changed the way the biggest U.S. banks do business. It bars banks' risky trading bets for their own profit with depositors' money. The rule is a key plank of the landmark Dodd-Frank financial regulation law aimed at reducing the likelihood of another crisis and taxpayer bailout of banks.
The move is the latest effort by the government to loosen such restraints on banks. President Donald Trump has blamed Dodd-Frank for constraining economic growth. The Fed is meeting Wednesday to propose changes to the Volcker Rule.
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