JPMorgan Chase & Co., Goldman Sachs Group Inc. and Bank of America Corp. won a delay of Dodd-Frank Act requirements that they wall off some derivatives trades from bank units backed by federal deposit insurance.
Commercial banks including the Wall Street firms may get as long as an additional two years -- until July 2015 -- to comply with the rules, the Office of the Comptroller of the Currency said in a notice yesterday. The provision was included in Dodd-Frank, the 2010 financial-regulation law, as a way to limit taxpayer support for risky derivatives trades.
Blanche Lincoln, an Arkansas Democrat who led the Senate Agriculture Committee during talks leading the regulatory overhaul, sponsored the original provision in 2010. It applied to more more types of derivatives before it was scaled back amid objections from Bernanke and Sheila Bair, former Federal Deposit Insurance Corp. chairman.