Bills
| 3.23.22

Loosening Securities Restrictions for (Mainly Big) Banks (H.R. 4167)

Do you support or oppose this bill?

What is H.R. 4167?

(Updated November 14, 2014)

Finance bill that tweaks the fine print of the Volcker Rule—part of a law designed to bar banks from making risky trades with their own money. The bill focuses on high-risk CLOs, or collaterized loan obligations, issued before January 31, 2014. CLOs are complex securities that bundle together corporate loans and bonds. The majority are held by large U.S. banks. 

Argument in favor

Will help diminish unnecessary losses to financial institutions and keep capital flowing to businesses that rely on CLOs for credit.

Argument opposed

Undermines risk protections in Volcker Rule, chipping away at regulatory oversight of the banking industry created post-recession.

Impact

lmpacts level of risk afforded to, and regulatory oversight of, U.S. banks holding CLOs.

Cost of H.R. 4167

A CBO cost estimate is not available at this time.

Additional Info

Media:

The Wall Street Journal Blog 

Of Note:

According to Americans for Financial Reform, two-thirds of all bank-owned CLOs are owned by two banks: JP Morgan and Citigroup.