This story appeared in Bank Digest.
The federal bank, thrift, and commodities regulators have adopted an interim final rule responding to financial industry complaints about the effect the Volcker Rule regulations will have on investments in collateralized debt obligations (CDOs) that are backed by trust preferred securities. The interim rule will permit banking entities to retain some investments made before Dec. 10, 2013, the date the final Volcker Rule was issued. It will not permit additional investments to be made. In an effort to ease the compliance burden for banks, the agencies have issued a non-exhaustive list of issuers that meet the interim rule’s requirements.