WASHINGTON (Reuters) - The U.S. Federal Reserve on Wednesday gave extensions of up to five years to Deutsche Bank, SVB Financial Group, and UBS Group on complying with part of the Volcker Rule that deals with illiquid funds.
The central bank said the three need more time to divest legacy illiquid funds in order to comply with the rule’s limits on their stakes in private equity and hedge funds.
The rule, part of the 2010 Dodd-Frank Wall Street reform law, limits the types of trading banks can conduct with their own money, as a way to curb speculation in financial institutions. But the financial services industry has said regulators have carried out the rule in a confusing and often convoluted way and are pressing the administration of President Donald Trump to make compliance easier and clearer.
Reporting by Lisa Lambert; editing by Diane Craft