SFIG Urges Senate Consideration of CLO Fix for Volcker RuleYesterday, SFIG sent a letter to Senate Majority Leader Harry Reid (D-NV) and Minority Leader Mitch McConnell (R-KY) urging Senate consideration of H.R. 5461 which recently passed the House by a bipartisan vote of 327-97. SFIG supports the bipartisan language contained in Title II of H.R. 5461 that creates a solution for the collateralized loan obligation (“CLO”) marketplace as it relates to the Volcker Rule. Specifically, the language contained in Title II of H.R. 5461 addresses this “ownership interest” issue posed by the Volcker Rule, and will allow companies across the United States to access affordable financing from banks that invest in CLOs.
In February, Neil Weidner, Partner at Cadwalader, Wickersham and Taft, testified on behalf of SFIG at a House Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises hearing entitled “The Dodd-Frank Act’s Impact on Asset-Backed Securities.” Mr. Weidner testified to the consequences of not finding a solution for the CLO market for the Volcker Rule and on the proposed legislative fix proposed in Title II of H.R. 5461.
SFIG will continue to work towards developing bipartisan support for a CLO solution in relation to the Volcker Rule.