WASHINGTON Dec 18 U.S. regulators are working
on ways to address some concerns from small and medium-sized
banks about the Volcker rule after it was finalized last week.
The American Bankers Association, an industry lobby group,
sent a letter on Tuesday to the agencies behind the proprietary
trading ban, saying the rules could have unintended negative
consequences for banks with investments in trust preferred
The trade group asked the Federal Reserve, Federal Deposit
Insurance Corp and Office of the Comptroller of the Currency to
address the conflict, which it said could cause "unexpected hits
to earnings and even to capital" at some banks.
The agencies are working to provide clarity that could
alleviate those concerns, a source familiar with the issue said.
The clarifications likely would not involve changes to the final
Regulators approved the final version of the Volcker rule, a
requirement of the 2010 Dodd-Frank Wall Street oversight law, on
Dec. 10 after years of work. The rules restrict banks' ability
to trade with their own money and limit their investments in
certain types of funds.
The rules do not officially take effect until 2015, but the
bankers association said accounting rules mean banks would
likely face losses sooner.