House Democrats Want Clarity On CLOs Under Volcker Rule

Law360, Washington (February 13, 2014, 8:57 PM EST) -- A group of Democratic House lawmakers on Wednesday asked federal banking regulators to make clear that they will not treat collateralized loan obligations as an “ownership interest” under the Volcker rule, avoiding the need for market-disrupting renegotiation or divestiture of certain existing CLOs by banks.

In a letter to the heads of the Federal Reserve, Federal Deposit Insurance Corp., U.S. Securities and Exchange Commission, Office of the Comptroller of the Currency and the Commodities Futures Trading Commission, 17 lawmakers said they were “strongly supportive” of the...
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