U.S. regulators should go back to the drawing board to fix rather than postpone banks’ concerns over treatment of collateralized loan obligations under the Volcker Rule, Representative Scott Garrett said today.
U.S. agencies trying to ensure the financial system is strong enough to withstand another crisis have settled on one of the last pieces of their regulatory apparatus to limit the size of bank debt, according to two people briefed on the discussions.
New York’s top bank regulator Benjamin Lawsky says he’s prepared to identify individual bankers by name to deter misconduct in the financial sector, starting with a BNP Paribas SA settlement over laundering funds from sanctioned countries including Iran.
Federal Reserve Board spokeswoman Barbara Hagenbaugh said the central bank is working with prosecutors and the U.S. Treasury’s Office of Foreign Assets Control “on matters involving Iran and other sanctioned entities.”
The Federal Reserve is investigating whether traders at the world’s biggest banks rigged benchmark currency rates, raising the risk that firms will be penalized for lax controls as regulators look for wrongdoing.