JPMorgan Chase & Co., Goldman Sachs Group Inc. and Bank ofAmerica Corp. won a delay of Dodd-Frank Act requirements that theywall off some derivatives trades from bank units backed by federaldeposit insurance.

Commercial banks including the Wall Street firms may get as longas an additional two years — until July 2015 — to comply with therules, the Office of the Comptroller of the Currency said in anotice yesterday. The provision was included in Dodd-Frank, the2010 financial-regulation law, as a way to limit taxpayer supportfor risky derivatives trades.

The Commodity Futures Trading Commission and other regulatorsneed to complete swap rules to allow “federal depositoryinstitutions to make well-informed determinations concerningbusiness restructurings that may be necessary,” the OCC said in thenotice. The so-called push-out provision of Dodd-Frank requiresthat equity, some commodity and non-cleared credit derivatives bemoved — or pushed out — into separate affiliates without federalassistance.

Continue Reading for Free

Register and gain access to:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.