Fed gives banks 2 more years on risky securities

[unhappycamper]

http://gazette.com/fed-gives-banks-2-more-years-on-risky-securities/article/feed/106589

Fed gives banks 2 more years on risky securities
Associated Press Updated: April 7, 2014 at 7:31 pm • Published: April 7, 2014

WASHINGTON (AP) — The Federal Reserve is giving U.S. banks two more years to ensure their holdings of certain complex and risky securities don't put them afoul of the new Volcker Rule.

The Fed's move announced Monday didn't give banks an outright exemption for the securities from the Volcker Rule's ban on high-risk investments. Wall Street banks had sought an exemption and the leading Wall Street lobbying group expressed disappointment with the Fed's move.

The Volcker Rule, adopted in December, is intended to limit banks' riskiest trading bets that could implode at taxpayers' expense. That kind of risk-taking on Wall Street helped trigger the 2008 financial crisis. Congress mandated the Volcker Rule in its financial overhaul law.

The Fed gave banks until July 2017 to "conform" their holdings of the collateralized loan obligations, which are mainly backed by commercial loans.

[Demeter]

1. Coddling, protecting their own speculations

Justice will roll down like an avalanche on them...in the next crash, no bailouts! and no bail-ins, either!