Home

American Bankers Association Challenges Volcker Rule
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

The American Bankers Association objects to a portion of the Volcker rule that will force lenders to get rid of CDOs backed by trust-preferred securities. The complaint was filed in federal court in Washington D.C. and the lawsuit challenges claims that the requirement of small banks to divest their holdings in some collateralized debt obligations will cost them about $600 million in losses.

The Volcker Rule refers to part of the Dodd–Frank Wall Street Reform and Consumer Protection Act, originally proposed by American economist and former United States Federal Reserve Chairman Paul Volcker to restrict United States banks from making certain kinds of speculative investments that do not benefit their customers. Volcker was appointed by President Barack Obama as the chair of the President’s Economic Recovery Advisory Board.
The Volcker Rule was first publicly endorsed by U.S. President Obama on January 21, 2010. The proposal specifically prohibits a bank or an institution that owns a bank from engaging in proprietary trading that is not at the behest of its clients, and also from owning or investing in a hedge fund or private equity fund, and also limits the liabilities that the largest banks can hold. Too many liabilities makes banks riskier investments, and also changes the atmosphere of the financial markets in many macroeconomic ways.

  
What
Where


Camden Fine, Independent Community Bankers of America president, had stated that day that more than 300 banks are “likely to take losses in their capital accounts” if forced to write down the securities. According to Bloomberg News, The American Bankers association seeks a court order blocking the Volcker rule from taking effect before the end of the year. “This would have a devastating impact on their prospective borrowers, including on the many small businesses that rely on local community banks,” reported Fine. On December 10, 2013, the Volcker Rule was approved by all five of the necessary financial regulatory agencies. It is set to go into effect April 1, 2014.

Image Credit: www.occupyforaccountability.org

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!






 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Mid-level Litigation Attorney

USA-CA-San Francisco

San Francisco office is seeking a mid-level litigation attorney with experience taking/defending dep...

Apply Now

Mid-level Litigation Attorney

USA-CA-San Francisco

San Francisco office is seeking a support attorney with some experience/familiarity with a litigatio...

Apply Now

Trust and Estate Attorney

USA-NY-New York City

Boutique trust and estate firm is seeking an attorney with 7+ years of experience. Candidate should ...

Apply Now

Commercial/Banking Litigation Attorney

USA-FL-Miami

Miami office of our client seeks commercial/banking litigation attorney with 3-6 years of experience...

Apply Now

RELEVANT JOBS

Civil Litigation Attorney

USA-CA-San Luis Obispo

The Bailey Law Firm is looking for a motivated, full-time civil litigation attorney with exceptional...

Apply now

Associate Attorney

USA-PA-Harrisburg

ASSOCIATE ATTORNEY: Harrisburg law firm specializing in workers comp seeks an attorney w/ 1-3 years ...

Apply now

Lateral Attorney

USA-IA-West Des Moines

Sullivan & Ward, P.C. a West Des Moines law firm, is seeking a motivated established attorney to joi...

Apply now

Workers Compensation and/or Social Security Attorney

USA-FL-Palm Coast

The candidate will be responsible for all aspects of the workers compensation case, including to, ev...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top