Federal Reserve delays parts of Volcker rule until 2017
The US Federal Reserve has given Wall Street banks even more time to comply with parts of the Volcker Rule, a key provision of the 2010 Dodd-Frank financial reform bill.
The rule prevents federally-insured banks from using their own money when investing in certain risky assets.
The Fed had already announced banks would have until 2017 to deal with one type of trading product.
It will now grant an extension to other types of funds.
Initially, the Fed had said banks would have until 21 July 2017 to stop trading in collateralised loan obligations, which essentially move the risk of investments in loans off their balance sheet.
The new extension applies to other types of "legacy covered funds", according to a release on the Fed's website, which include "having certain relationships with a hedge fund or private equity fund".
Federal Reserve delays parts of Volcker rule until 2017
ReplyDeleteThe US Federal Reserve has given Wall Street banks even more time to comply with parts of the Volcker Rule, a key provision of the 2010 Dodd-Frank financial reform bill.
The rule prevents federally-insured banks from using their own money when investing in certain risky assets.
The Fed had already announced banks would have until 2017 to deal with one type of trading product.
It will now grant an extension to other types of funds.
Initially, the Fed had said banks would have until 21 July 2017 to stop trading in collateralised loan obligations, which essentially move the risk of investments in loans off their balance sheet.
The new extension applies to other types of "legacy covered funds", according to a release on the Fed's website,
which include "having certain relationships with a hedge fund or private equity fund".
http://www.bbc.com/news/business-30542643