Fed Gives Banks Two More Years To Shed CLOs Under Volcker

Reuters

The U.S. Federal Reserve will give banks two more years to divest collateralized loan obligations (CLOs) that fall under the Volcker rule, which bans banks from making a range of risky investments.

The Fed said banks will now have until July 21, 2017 to conform their ownership interests in the funds, which pool together risky loans.

Continue Reading Below

(Reporting by Douwe Miedema; Editing by Alden Bentley)