US Codex
Bill
Notes

To clarify that certain banking entities are not required to divest from collateralized debt obligations backed by trust preferred securities under the Volcker Rule.

S. 1912 · 113th Congress · Jan 9, 2014 · Lineage

A BILL

Section 1 Volcker rule clarification relating to collateralized debt obligations backed by trust preferred securities

Section 13(g) of the Bank Holding Company Act of 1956 (12 U.S.C. 1851(g)) is amended by adding at the end the following:

“(4) Trust preferred securities—Nothing in this section shall require or be construed to require a banking entity having total consolidated assets of less than $50,000,000,000 or an organization that is a mutual holding company to divest from any collateralized debt obligation issued before May 19, 2010, if—

“(A) the primary purpose for any such obligation was as a vehicle for trust preferred securities; and

“(B) the investment in any such obligation was made on or before December 10, 2013.”