Defining Issues: Regulatory Agencies Announce Review of the Treatment of Certain Securities Under the Final Rule Implementing Section 619 of the Dodd-Frank Act
Dec 31, 2013
From the Financial Reporting View
This edition of Defining Issues reports that on December 27, 2013, the Federal Reserve Board, the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the Securities and Exchange Commission (collectively, Agencies) announced in a joint statement that they are reviewing whether it would be appropriate and consistent with the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) to not subject collateralized debt obligations backed by trust preferred securities (TruPS-CDOs) to the prohibitions on ownership of Covered Funds under section 619 of Dodd-Frank, often referred to as the "Volcker rule." The Agencies stated that, based on information recently received, they understand the investments and capital levels of a number of community banks might be adversely affected if TruPS-CDOs are treated as Covered Funds.