GOP Reps. Seek Changes To CLO Risk-Retention Proposal

Law360, Washington (December 18, 2013, 3:03 PM EST) -- A group of Republican congressmen has asked financial regulators to revise proposed credit risk-retention requirements for managers of collateralized loan obligations and lead arrangers of syndicated loans, saying the proposal would raise borrowing costs for businesses.

The proposal by six federal agencies, including the Federal Reserve and the U.S. Securities and Exchange Commission, would generally require CLO managers to retain 5 percent of any loans they arrange as part of the implementation of Section 941 of the Dodd-Frank Act. But the lawmakers' Dec. 10 letter said...
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