PRINCETON, N.J., April 4 Daniel Tarullo, the
outgoing Federal Reserve governor, on Tuesday said parts of the
existing Volcker rule have proved unworkable and that annual
stress tests of leading Wall Street banks may not need a
"As it has been drafted and implemented, the Volcker rule is
too complicated," Tarullo said in a speech at Princeton
The Volcker rule is meant to prevent banks from using
customer deposits to make investor bets.
Tarullo also said annual checkups for Wall Street may be too
complicated. The yearly 'stress test' considers both financial
matters and subjective concerns like management. Tarullo said
those 'qualitative' benchmarks could be eliminated in time.
For eight years, Tarullo has authored Wall Street rules to
prevent financial shocks and a taxpayer-funded bailout of banks.
But he is stepping down and Tuesday's speech would be his last.
(Reporting By Patrick Rucker in Washington. Jonathan Spicer in
Princeton.; Editing by Chizu Nomiyama)