Discussion: The DoddFrank Act The Volcker Rule limited banks’ abilities to own, invest, or sponsor private equity funds, proprietary trading operations, or hedge funds for their own profit, unrelated to serving their customers. The Volcker Rule came about as part of The DoddFrank Act that altered the Federal Reserve’s ability to extend emergency liquidity to nondepository institutions. Evaluate policy innovations in the regulation of financial intermediaries that are aimed at decreasing systemic or systematic risk. Present your understanding of how these policy innovations could have an impact on individual firms across the economy. Discuss whether you believe these actions are compatible or incompatible with Bagehot’s dictum as it has been interpreted by the Federal Reserve. Do you believe that these policy innovations are beneficial to firms generally? References: Cline, W. R., & Gagnon, J. E. (2013, September). Lehman Died, Bagehot Lives: Why Did the Fed and Treasury Let a Major Wall Street Bank Fail? Retrieved from https://piie.com/publications/pb/pb13 21.pdf Volcker Rule Resource Center. (n.d.). Retrieved from https://www.sifma.org/issues/regulatoryreform/volckerrule/overview/ Morrison, & Foerster. (2010). The DoddFrank Act: a cheat sheet. Retrieved from https://media.mofo.com/files/uploads/Images/SummaryDoddFrankAct.pdf