Fed gives banks more time on Volcker rule detail

Reuters: The U.S. Federal Reserve will give banks two more years to divest collateralized loan obligations (CLOs) that fall under the Volcker rule, a part of the Dodd-Frank financial law that bans banks from making a range of risky investments. The Fed said banks will now have until July 21, 2017 to shed these funds, which pool together risky loans. CLOs are a way for banks to remove loans from their balance sheets by selling the exposure to other investors, a form of securitization.

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