House Panel OKs Bill Striking Swaps 'Pushout' Rule

Law360, New York (February 16, 2012, 9:17 PM EST) -- A U.S. House of Representatives committee on Thursday approved a bill that would repeal part of the Dodd-Frank Wall Street Reform and Consumer Protection Act's “pushout” rule, thus allowing federally insured bank units to act as derivatives traders.

H.R. 1838, called the Swaps Bailout Prevention Act, strikes most of Section 716 of the Dodd-Frank Act, which prohibits providing federal assistance to a swaps entity and would require banks to place their derivatives activity in nonfederally insured units. Financial institutions have claimed the pushout rule would make...
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