U.S. regulators are considering exempting collateralize debt obligations backed by trust preferred securities from activity barred by the Volcker Rule.
The agencies, which includes the Federal Reserve Board, the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the Securities and Exchange Commission (SEC), announced they are reviewing this consideration and intend to address the matter no later than January 15, 2014.
Regulators issued final rules on December 10 for implementation, but full compliance is not mandated until at least 2015.
Regulators Consider Exempting Some CDOs from Volcker Rule
U.S. regulators are considering exempting collateralize debt obligations backed by trust preferred securities from activity barred by the Volcker Rule.