Reps. Look To Soften Dodd-Frank Swaps 'Pushout' Rule

Law360, New York (March 7, 2013, 1:49 PM EST) -- A bipartisan group of congressmen introduced a bill Wednesday to repeal part of the Dodd-Frank Act-mandated “pushout” rule and let federally insured bank units act as derivatives traders, a move they say will allow banks to continue necessary risk-mitigation efforts.

The bill, H.R. 992, strikes most of Section 716 of the sweeping financial reform law, which requires banks to split their derivatives activity — bar some limited types of swaps, mostly used for hedging — into separately capitalized, nonfederally insured units, and prohibits bailouts and other...
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