The Office of the Comptroller (OCC) of the Currency sent out official letters mandating the transition period. The mandate is aimed to allow more time for the banks to adhere to the push-out requirement.
Part of the 2010 financial law, seeks to keep risky trading activities out of institutions that has government backstops, such as access to the Federal Reserve's discount window or deposit insurance.
The banks must forego federal support or strictly push swaps trading into separate bodies. The rule will take effect on July 16. The OCC granted similar mandates to HSBC, Wells Fargo, Morgan Stanley and US Bancorp.
The Dodd-Frank Act is categorized into sixteen titles. Among the sixteen titles are the following provisions such as cover financial stability transparency, regulation of orderly liquidation, supervision on payment clearing and settlements, investor protections and regulation of advisers to hedge funds and others.
Join the Conversation