Regulation of bank proprietary trading post 2007–09 crisis: An examination of the Basel framework and Volcker rule

•The Basel framework sets minimum capital requirements for bank trading portfolios .•It bases these requirements on stressed Conditional Value-at-Risk.•In the US, the Volcker rule restricts the composition of bank trading portfolios.•The Basel framework and Volcker rule are deficient in regulating such portfolios.•Basing minimum capital requirements on standard deviation is an improvement.