BANKS SEEK TO LIMIT VOLCKER Bloomberg’s Yalma
Post# of 63821
Posted On: 01/14/2014 4:28:03 PM
BANKS SEEK TO LIMIT VOLCKER
Bloomberg’s Yalman Onaran: “U.S. banks are seeking to limit the reach of the Volcker Rule by challenging its definition of what it means to own a hedge fund or private-equity fund. The opening gambit was made by the American Bankers Association … which said in a federal lawsuit filed last month on behalf of community banks that regulators had defined too broadly what it means to have an ownership stake. A week later, four other organizations, including the Financial Services Roundtable, sent a letter to bank-supervisory agencies making the same point.
“Regulators, who spent more than two years writing the rule, defined ownership widely to capture all economic interests a firm might have in restricted funds . The ABA said it should be narrower, focusing only on equity, and that buying debt a fund sells doesn’t qualify as ownership. If the industry succeeds in getting the definition narrowed, that could allow banks to have the ties to funds the rule intended to outlaw.”
http://bloom.bg/1ajZobi
Bloomberg’s Yalman Onaran: “U.S. banks are seeking to limit the reach of the Volcker Rule by challenging its definition of what it means to own a hedge fund or private-equity fund. The opening gambit was made by the American Bankers Association … which said in a federal lawsuit filed last month on behalf of community banks that regulators had defined too broadly what it means to have an ownership stake. A week later, four other organizations, including the Financial Services Roundtable, sent a letter to bank-supervisory agencies making the same point.
“Regulators, who spent more than two years writing the rule, defined ownership widely to capture all economic interests a firm might have in restricted funds . The ABA said it should be narrower, focusing only on equity, and that buying debt a fund sells doesn’t qualify as ownership. If the industry succeeds in getting the definition narrowed, that could allow banks to have the ties to funds the rule intended to outlaw.”
http://bloom.bg/1ajZobi
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