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

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of