On Friday, the Federal Reserve delayed by two years compliance with the Volcker rule, the prohibition on banks’ proprietary trading—deals made to profit the bank instead of their clients. The postponement removes a key argument of those people who dismissed Congress’ Christmas gift last week to Wall Street, the elimination of Dodd-Frank Section 716.

Section 716 required commercial banks to push their riskiest swaps into separately capitalized subsidiaries—but Congress nixed it with a rider in its year-end budget bill known as the CRomnibus. Wall Street lobbied intensively for Section 716’s erasure, but even some of the finance industry’s toughest critics, like Paul Krugman, argued that substantively, it wasn’t that big a deal.

And one key reason they gave for this was that the Volcker rule overlapped with the Section 716 rule. The theory went that the Volcker rule already prohibited risky trades, so there was no need to also spin them off into subsidiaries. The Bipartisan Policy Center (BPC), applauding the CRomnibus maneuver, wrote, “a well-structured and monitored Volcker rule will accomplish the same policy objectives as the Lincoln amendment, making the swaps push out both costly and unnecessary.” (BPC calls Section 716 “the Lincoln amendment” because the provision was initially added to Dodd-Frank by then-Senator Blanche Lincoln.)

Let’s first point out that this isn’t true. Mike Konczal, Alexis Goldstein, and Caitlin Kline explained this, noting the difference between risky activities and risky products. The Volcker rule does stop certain risky activities. But if banks sell products like uncleared credit default swaps, under the guise of “making markets” or hedging other bets, then they are exempted from the Volcker rule.

Volcker and 716 were complementary regulations. What the Volcker rule doesn’t prohibit Section 716 forces out into a separate subsidiary. If key elements of the Volcker rule won’t be enforced until 2017—as the Federal Reserve just announced—then the logic of killing other rules that allegedly “overlap” with it completely falls apart. Banks already have had four years since the passage of Dodd-Frank to comply with the Volcker rule; with the multiple Federal Reserve extensions, they now have nearly seven years to unwind investments in entities like private equity firms and hedge funds. The Fed also confirmed a previous announcement that banks need not exit their investments in collateralized loan obligations until 2017.