Waters Applauds Targeted Volcker Relief to Community Banks
Following the release of an interim rule by regulators making changes to a provision of the “Volcker Rule” related to the treatment of investments in Collateralized Debt Obligations (CDOs) backed by Trust Preferred Securities (TruPS), Congresswoman Maxine Waters, Ranking Member of the Financial Services Committee, released the following statement supporting the decision to provide regulatory relief to the community banking sector.
“Today’s announcement will provide important relief to community banks with investment portfolios that include assets backed by Trust Preferred Securities. Our nation’s regulators should be applauded for this quick and effective policy clarification that, without weakening the Volcker rule, addresses the concerns of community banks and Democratic lawmakers. I am very pleased our regulators have responded in a manner that is consistent with the Dodd Frank Wall Street Reform and Consumer Protection Act.
Last week, Waters led 22 Democratic members of the Financial Services Committee in a letter calling on regulators to provide this regulatory relief to the community banking sector, while preserving strong controls on banks’ investments.