summary
Introduced
03/06/2014
03/06/2014
In Committee
03/14/2014
03/14/2014
Crossed Over
04/30/2014
04/30/2014
Passed
Dead
01/03/2015
01/03/2015
Introduced Session
113th Congress
Bill Summary
Restoring Proven Financing for American Employers Act - Amends the Bank Holding Company Act of 1956 with respect to certain prohibitions on proprietary trading by banking entities and certain relationships with hedge funds and private equity funds (Volcker Rule). Prohibits the Volcker Rule from being construed to require divestiture of any debt securities of collateralized loan obligations issued before January 31, 2014. Declares that a banking entity shall not be considered to have an ownership interest in a collateralized loan obligation because it acquires or retains a debt security in it if the debt security has no indicia of ownership other than the right of the banking entity to participate in the removal for cause, or in the selection of a replacement after removal for cause or resignation, of an investment manager or investment adviser of the collateralized loan obligation. Defines "collateralized loan obligation" as any issuing entity of an asset-backed security comprised primarily of commercial loans.
AI Summary
This bill, titled the Restoring Proven Financing for American Employers Act, amends the Volcker Rule, which is a regulation under the Bank Holding Company Act of 1956 that restricts proprietary trading by banking entities and their relationships with hedge funds and private equity funds. Specifically, the bill prohibits the Volcker Rule from being interpreted to require banks to sell off any debt securities of collateralized loan obligations (CLOs) that were issued before January 31, 2014. A CLO is defined as an entity that issues asset-backed securities primarily composed of commercial loans. Furthermore, a banking entity will not be considered to have an ownership interest in a CLO simply by holding its debt securities, as long as their only rights related to ownership are the ability to participate in removing or replacing the CLO's investment manager or advisor for specific reasons.
Committee Categories
Business and Industry, Housing and Urban Affairs
Sponsors (2)
Last Action
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (on 04/30/2014)
Official Document
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