The Volcker Rule is a financial regulation that was implemented as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010. Named after former Federal Reserve Chairman Paul Volcker, the rule aims to prevent excessive risk-taking by banks. It restricts banks from engaging in proprietary trading, which is when they trade financial instruments for their own profit rather than on behalf of customers. Additionally, the Volcker Rule limits banks' investments in hedge funds and private equity funds. This regulation is designed to protect consumers and the financial system by ensuring that banks focus on traditional lending and investment activities rather than speculative trading that could lead to significant losses.