The Volcker Rule: Impact of the Final Rule on Securitization Investors and Sponsors

On December 10, 2013, the Federal Reserve, FDIC, OCC, SEC and CFTC (the “Agencies”) issued the long-awaited final rule (the “Final Rule”) implementing the Volcker Rule. The Volcker Rule generally prohibits banking entities — a broad term that includes banks, bank holding companies, foreign banks treated as bank holding companies, and their respective affiliates — from (i) engaging in proprietary trading and (ii) acquiring or retaining ownership interests in, or acting as sponsors to, certain hedge funds and private equity funds (“covered funds”). The Final Rule makes significant changes from the Proposed Rule that was published in the Federal Register on November 7, 2011 (the “Proposed Rule”), in response to the large number of comments received on the Proposed Rule. The Final Rule was accompanied by a lengthy preamble (the “Preamble”) providing additional commentary regarding the Final Rule.

The purpose of this Client Alert is to summarize certain impacts of the Final Rule on banking entities that engage in asset securitization activities as investors, sponsors or providers of credit or liquidity support.

Please see full Alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Topics:  Banks, CFTC, FDIC, Federal Reserve, Foreign Banks, OCC, SEC, Volcker Rule

Published In: General Business Updates, Finance & Banking Updates, International Trade Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Morrison & Foerster LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »