Bank Industry Pushes for More Revisions to Volcker Rule
This article is for subscribers only.
Bank-industry groups and Republican lawmakers called for broader Volcker Rule revisions a day after regulators permitted exemptions for some collateralized debt obligations faulted for obscuring lenders’ capitalization.
Representatives of the Securities Industry and Financial Markets Association and other groups joined House Financial Services Committee members in highlighting the “unintended consequences” of the proprietary-trading rule at a Washington hearing yesterday. Lawmakers and lobbyists alike said the Jan. 14 move to shield some CDOs backed by trust-preferred securities wasn’t enough to protect banks and the public from harm.