Regulators Set To Approve Volcker Rule

Attempt to stop banks from gambling on financial markets

(Reuters) - U.S. regulators are set on Tuesday to approve a rule to rein in risky trading b ybanks, a crucial part of their efforts to reform Wall Street and prevent another costly taxpayer bailout.

The Volcker rule, named after former Federal Reserve Chairman Paul Volcker, who championed the reform, prohibits banks from betting on financial markets with their own money, a practice known as proprietary trading.

The rule, which has now mushroomed into 800 pages, will also bar them from owning more than 3 percent of hedge funds or private equity funds.