The Office of the Comptroller of the Currency (OCC) has granted seven large US banks an additional two years to comply with Dodd-Frank rules requiring they spin off derivatives trades into separate units.
The regulator sent approval letters to the banks, which also include Citigroup, Wells Fargo, Morgan Stanley, HSBC Holdings and US Bancorp.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The move avoided a July 16 deadline that could have forced the banks to cut off their swaps activities next month.
Dodd-Frank overhauled swaps-trading rules in an effort to make the industry less vulnerable to a crisis such as the one that struck in 2008. The law required equity, some commodity and non-cleared credit derivatives be pushed out into affiliates while interest-rate and some credit swaps can still be traded inside the banks.
The banks must forego federal support or strictly push swaps trading into separate bodies.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
