Analysis: Volker Rule to Have Limited Impact on Most Securitizations; Re-REMICs Could Be Negatively Affected
January 17, 2014
The long-anticipated final implementation of the so-called Volcker rule this spring will have a limited impact on securitized products, according to a recent report by Barclays. A requirement of the Dodd-Frank Act to prohibit banking entities from engaging in proprietary trading and making investments with private-equity funds and hedge funds, the Volcker rule was finalized by five federal regulators last month and becomes effective April 1, 2014. Banks should expect...