ABA wrote House Members in support of legislation (H.R. 992) that would reform the swaps push-out requirement of the Dodd-Frank Act to allow banks to continue engaging in commodity, equity, and some structured finance products.
“The push-out requirement applies only to swaps dealers and some major swaps participants, but it has been the focus of broad debate because it will affect the ability of both banks and their customers to centralize risk management,” ABA explained. “Banks would have to form separately capitalized and funded affiliates to conduct some swaps.”
The House had been scheduled to consider the bill tomorrow, but has postponed its consideration during the government shutdown.
Read the full letter.