This story appeared in Bank Digest.
The Office of the Comptroller of the Currency has released a bulletin providing guidance on the collateralized debt obligations backed primarily by trust preferred securities interim final rule. On Jan. 14, 2014, the OCC, Federal Reserve Board, Federal Deposit Insurance Corporation, Securities and Exchange Commission, and Commodity Futures Trading Commission approved an interim final rule to permit banking entities to retain interests in certain collateralized debt obligations backed primarily by trust preferred securities (TruPS CDOs), notwithstanding the investment prohibitions of section 619 of the Dodd-Frank Act, known as the Volcker Rule. The interim final rule was published in the Federal Register on Jan. 31, 2014, and becomes effective on April 1, 2014. The OCC, together with the other rule-writing agencies, solicited comments on the interim final rule through March 3, 2014.