Major U.S. Banks Granted Delay on Swaps Push-Out Rule
By Dow Jones Business News, June 11, 2013, 07:15:00 PM EDT
Read more: http://www.nasdaq.com/article/major-us-banks-granted-delay-on-swaps-push-out-rule-20130611-01143#ixzz2Z6kI0CRs
By Dow Jones Business News, June 11, 2013, 07:15:00 PM EDT
WASHINGTON--Seven of the largest U.S. banks will have an
additional two years to spin off some lucrative derivatives trades into
separate units, the Office of the Comptroller of the Currency said Tuesday,
continuing a fight over one of the more controversial rules passed in the wake
of the financial crisis.
The OCC said in January it would look favorably upon any delay
requests, yet the action is likely to reignite criticism over the slow pace of
implementing the 2010 Dodd-Frank financial law. With the delay, firms such as
Bank of America Corp. ( BAC ),
J.P. Morgan Chase & Co. ( JPM ),
and Citigroup Inc. ( C )
won't have to comply with the "swaps push- out" rule until July 16,
2015.
An OCC spokesman said the agency notified the banks of its
decision on Tuesday. Wells Fargo & Co. (WFC ),
HSBC Holdings PLC (HBC, HSBA.LN), Morgan Stanley ( MS )
and U.S. Bancorp ( USB )
were also granted an additional 24 months to comply with the rules.
Spokesmen for J.P. Morgan Chase, Wells Fargo and Citigroup
declined to comment.
Pushed by then-Senate Agriculture Chairman Blanche Lincoln (D.,
Ark.), the rule requires banks to spin off some derivatives-trading operations
to separate units that aren't eligible for federal assistance. This includes
federal deposit insurance and access to the Federal Reserve's discount window.
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