SEC, Others Move To Relax Volcker Rule's CDO Restrictions

Law360, New York (January 14, 2014, 9:00 PM EST) -- Federal agencies on Tuesday allowed a loosening of the Volcker rule to let banks hold on to collateralized debt obligations backed by so-called trust-preferred securities, amid industry clamor and pending legislation seeking such an outcome.

Five federal agencies including the U.S. Securities and Exchange Commission and the Federal Deposit Insurance Corp. greenlighted the interim rule, saying that banks can hold on to their interest in those funds as long as they meet certain requirements, including that the bank acquired the interest in the TruPS CDOs before Dec....
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