The Volcker Rule, named after former United States Federal Reserve Chairman Paul Volcker, was first publicly discussed in January 2010. President Obama had proposed the Volcker Rule as a supplemental ruling to the Dodd Rule. -Frank Wall Street Reform and Consumer Protection Act, a bill that was already being considered by Congress at the time. The Dodd-Frank Wall Street Reform and Consumer Protection Act, also known as the Dodd-Frank Act, was intended to help promote and further regulate the financial stability of the American economy, particularly during the Great Recession, which officially lasted from 2008 to 2008. 2010. The general objective of this law is to regulate the financial regulatory system by avoiding excessive or unnecessary risk-taking by large influential banks, which is one of the main causes of the initial outbreak of the financial crisis. A crucial part of this law is the Volcker Rule, as it aims to incentivize financial regulators to reform how banks can invest and regulate market transactions. The Volcker Rule aims to significantly reduce risks within the banking industry by setting a restriction on trading. This limits how banks invest their money in “speculative” markets, where they are not tied to their customers and do not benefit them. For more specific banking entities, the Volcker Rule emphasizes prohibiting any investment in, ownership of, or sponsorship of hedge funds, private equity funds, as well as any “proprietary” trading. Additionally, it generally prevents financial institutions from using the bank's money, which is FDIC insured, to manage private equity and hedge funds. Many factors triggered the financial crisis in 2008, one of the main ca...... middle of paper ...... this flaw in the decision coincides with the restriction of betting by commercial banks and d The investment is influential, as financial analysts say it would drain liquidity from the sector. As mentioned earlier, when the regulations were implemented, bankers were not earning as much income from their investments as they expected, leading to increased bank fees and, therefore, higher costs of stocks and bonds. The Volcker Rule has sparked much debate since its official implementation in 2010. It was designed to reduce risks in banking activities and transactions. It has a solid foundation, derived from the Glass-Steagall Act and creating substance for the Dodd-Frank Act. The implementation of the Volcker Rule has various advantages and disadvantages, but only time will tell whether it has effectively helped the economy prevent another financial crisis..