WASHINGTON — Two Senate Democrats announced Wednesday they will introduce legislation that would restrict commercial banks' ability to engage in proprietary trading, the first step by lawmakers to implement the Obama administration's so-called "Volcker Rule."

Senators Carl Levin, D-Mich., and Jeff Merkley, D-Ore., told reporters that The Proprietary Trading Act would ban the practice by federally insured depository institutions and also forbid commercial banks from investing in private equity and hedge funds. The bill also would impose higher capital requirements and set strict quantitative standards for nonbank financial institutions that make trades.

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