House panel moves to alter Dodd-Frank's push-out rule

02/17/2012 | Bloomberg Businessweek

The House Financial Services Committee approved by voice vote a measure to let banks keep equity and commodity derivatives in units insured by the federal government. The legislation would remove part of the push-out rule from the Dodd-Frank Act. SIFMA has questioned unintended consequences of the push-out rule. "We are also concerned that clients will migrate their swap contracts to other entities which are not subject to prudential regulation by federal regulators," according to a letter by Kenneth Bentsen Jr., executive vice president for public policy at SIFMA. "As a result, systemic risk may be increased instead of reduced." Read the SIFMA letter.

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