Banks stand to enjoy new flexibility in complying with Dodd-Frank’s proprietary trading ban, but it remains to be seen if regulators will grant them all the relief they have sought.
Critics of the Dodd-Frank provision are likely heartened by indications that policymakers may soon finalize a more bank-friendly version of the trading ban, but that relief could come at a price.
Wall Street watchdogs are poised to take a major step toward overhauling limits on banks’ ability to trade with their own funds, according to people familiar with the effort.
The regulators have yet to complete rules on regional bank supervision, community bank capital and other provisions meant to ease institutions' burden.
Expanding exemptions for initial margin requirements on swaps transactions “would harm financial stability and U.S. taxpayers,” said the top Democrats on the House and Senate banking panels.
Among other things, the letter asked the regulators to ease requirements for a new community bank leverage ratio and analyze the impact of the pending CECL accounting change.
The chamber passed a bill that would clarify how certain loans backed by the Department of Veterans Affairs are securitized, and legislation encouraging first-time homebuyers to participate in counseling programs.
