Senate Bills Take Aim At Volcker Rule's 'TruPS' CDO Ban

Law360, New York (January 13, 2014, 2:22 PM EST) -- As U.S. financial regulators weigh a response to backlash from small and midsized banks over a Volcker Rule provision barring them from holding collateralized debt obligations backed by so-called trust-preferred securities, Senators unveiled a pair of bills granting an exemption for those securities last week.

Both bills would provide exemptions for banks that would allow them to hold onto the CDOs backed by what are commonly known as TruPS after community and regional banks sued to block the provision in the Volcker Rule, the Dodd-Frank Act's...
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