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A bipartisan group of lawmakers is urging regulators to reconsider a provision in the recently finalized Volcker rule that they warn could harm community banks that own trust-preferred securities.
December 19 -
WashingtonFirst Bankshares (WFBI) in Reston, Va., is the latest lender to divest securities on concerns about the Volcker Rule's controversial ban on collateralized debt obligations.
December 27 -
WASHINGTON The American Bankers Association plans to challenge the Volcker Rule in court unless regulators immediately suspend portions of the controversial regulation that restrict certain collateralized debt obligations of trust-preferred securities.
December 23 -
Zions Bancorp (ZION) said the Volcker Rule will force it to take a $387 million charge on its portfolio of collateralized debt obligations.
December 16 -
The $1.1 billion-asset company said in a regulatory filing Thursday that it sold bank and insurance trust-preferred collateralized debt obligations that cost about $8.3 million -- at an $850,000 loss.
December 19 -
BankUnited in Miami Lakes, Fla., has sold two batches of securities in order to comply with the Volcker Rule.
December 19 -
WASHINGTON The American Bankers Association plans to challenge the Volcker Rule in court unless regulators immediately suspend portions of the controversial regulation that restrict certain collateralized debt obligations of trust-preferred securities.
December 23
Community Bank System (CBU) in DeWitt, N.Y., will take a $6.9 million loss in the fourth quarter after selling collateralized-debt obligations and other securities in response to concerns over the Volcker Rule.
The $7.3 billion-asset company said Tuesday that it lost $15.5 million in the sale of trust-preferred CDOs. The company also eliminated $226.4 million of Federal Home Loan Bank advances and sold $417.6 million of Treasury securities classified as held to maturity.
Community Bank System said it sold the securities to comply with its interpretation the Volcker Rule, which aims to ban proprietary trading. "The company believes that the final rules... require banking entities to divest certain disallowed securities, including its holdings of trust preferred CDOs," Community Bank System said in a press release.
The final version of the Volcker Rule, released earlier this month, has prompted a backlash from banks and trade groups who argue that restrictions on CDOs and collateralized-loan obligations could force banks to shed assets at big losses. The American Bankers Association filed a lawsuit last week to
Community Bank System is at least the fifth bank to announce plans to sell securities to comply with the final rule, joining
"We are pleased to have efficiently executed the sale of the trust preferred CDOs and the simultaneous investment and debt actions which we believe are in the best interest of our shareholders," Community president and chief executive Mark Tryniski said in the release. "These actions serve to eliminate the uncertainties created by the Volcker Rule."
