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Banks Get Easier Volcker Rule and $40 Billion Break on Swaps

  • U.S. bank regulators approve overhauls of post-crisis rules
  • Changes add to Wall Street wins during Trump administration
    

Source: Getty Images

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Wall Street banks will soon be able to boost investments in venture capital funds and pocket billions of dollars they’ve had to set aside to backstop derivatives trades as U.S. regulators continue their push to roll back post-crisis constraints.

The Federal Reserve, Office of the Comptroller of the Currency and Federal Deposit Insurance Corp. approved changes to the Volcker Rule Thursday that let banks increase their dealings with certain funds by providing more clarity on what’s allowed. The regulators also scrapped a requirement that lenders hold margin when trading derivatives with their affiliates.