April 7, 2014 Alert - Fed Extends Conformance Period For CLOs to the Volcker Rule
This afternoon, the Federal Reserve Board extended the deadline for banking entities to conform their ownership interests in and sponsorship of collateralized loan obligations (CLOs) to the Volcker Rule by two years to July 21, 2017. Per the Federal Reserve’s press release, “A banking entity would not have to include ownership interests in CLOs to determine its investment limits under the final rule, and a banking entity would not be required to deduct CLO investments from tier 1 capital under the final rule until the end of the relevant conformance period.”

Tomorrow, the House Financial Services Committee will hold a hearing at 10:00am EST to examine Dodd-Frank implementation. Committee Members are likely to discuss this evening’s release by Federal Reserve Board with witnesses at tomorrow’s hearing.

SFIG will be monitoring tomorrow’s hearing, and will continue to work with both Congress and the regulators to find comprehensive solutions for CLOs as they relate to the Volcker Rule.
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