House Votes on Amendments to the Volcker Rule Relating to Collateralized Loan Obligations

The U.S. House of Representatives voted on Wednesday to pass H.R. 5405, the Promoting Job Creation and Reducing Small Business Burdens Act. One provision of the bill would grandfather certain CLOs from the covered fund prohibitions of the Volcker Rule and would override the Volcker Rule regulations' definition of "ownership interest." The bill now moves to the Senate Banking Committee, where the CLO provision is expected to meet opposition.

See: Text of Legislation.
Related News: FRB Allows Banking Entities Two Additional One-Year Extensions to Conform CLO Ownerships Covered by Volcker (with Cammarn Comment) (April 7, 2014).