This story appeared in Bank Digest.
The Federal Deposit Insurance Corporation has notified its supervised financial institutions that the federal banking agencies, along with the Securities and Exchange Commission, have issued a statement regarding the treatment of Collateralized Debt Obligations (CDOs) that contain Trust Preferred Securities (TruPS) under section 13 of the Bank Holding Company Act, which implements Section 619 of the Dodd-Frank Act, also known as the "Volcker Rule." The agencies currently are considering whether it would be appropriate and consistent with the Dodd-Frank Act not to subject TruPS CDOs to the investment prohibitions of the Volcker Rule. The agencies intend to address this matter no later than Jan. 15, 2014.