Bank Lobby Drops Volcker Rule Lawsuit

Feb 13 2014 | 11:05am ET

A banking industry group has dropped its lawsuit against U.S. regulators after the latter amended part of the Volcker rule barring community banks from holding trust-preferred collateralized debt obligations.

The regulators recently agreed to a narrow exception for the CDOs, and remain in talks with the American Bankers Association, it said yesterday. The group's president, Frank Keating, said it dropped the December litigation "to constructively engage with the regulators without the chilling impediment of pending litigation."

"The interim final rule has allowed many banks to avoid taking hundreds of millions of dollars in unnecessary write-downs and has helped minimize the cost and compliance burden for those that are affected," Keating added.

The Volcker rule is designed to limit bank risk, and, among other provisions, bars banks from proprietary trading and strictly constricts their alternative-investment activities.


In Depth

Change In 'Accredited Investor' Definition Could Hurt Crowdfunding Space

Jul 25 2014 | 8:14am ET

The Securities and Exchange Commission is considering changes to its 30-year-old...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note