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Fed Releases Final Swaps Push-Out Rule for Foreign Banks 

December 30, 2013
MoneyNews

The Federal Reserve completed a rule that gave foreign banks a chance to delay a Dodd-Frank Act requirement that they wall off derivatives trades from their U.S. branches.

The final rule will be effective Jan. 31 and wasn’t changed from an interim version put out in June, the central bank said in a statement issued in Washington. The rule treats uninsured U.S. branches of foreign banks the same as branches that have government backing, including deposit insurance.

Foreign banks such as Frankfurt-based Deutsche Bank AG, London-based Standard Chartered Plc and Societe Generale SA, the second-largest French bank, already asked for and received two-year delays earlier this year to comply with the rule by July 2015. U.S. banks such as JPMorgan Chase & Co., Goldman Sachs Group Inc. and Bank of America Corp. had also obtained two-year transition periods to move derivative trading from deposit-taking units.

Read more: MoneyNews

 
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