Seeking Alpha

Regulators mull change to Volcker Rule CDO provision

  • Regulators are considering whether it would be "appropriate and consistent" with the Volcker Rule to allow smaller banks to hold certain CDOs of trust-preferred securities that they may otherwise have to sell. Authorities plan to make a ruling by January 15.
  • The news comes after the American Bankers Association threatened to sue over the provision, which the industry group says would force 275 small banks to take a $600M hit to capital.
  • At least three lenders - Zions Bancorp (ZION) being the most prominent - have said they would have to write down or divest such assets immediately at a substantial loss.
  • Related ETFs: FAS, XLF, FAZ, UYG, KRE, KBE, VFH, IYF, SEF, IAT, IYG, PFI, FXO, KBWB, RKH, QABA, RWW, KRU, FINU, KBWR, RYF, PSCF, FNCL, KRS, FINZ
From other sites
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs