WASHINGTON Jan 14 Five U.S. bank regulatory
agencies on Tuesday approved a tweak to the Volcker rule that
would allow banks to keep interests in certain funds backed by
The change was aimed at easing small banks' concerns that
they needed to dump certain investments they had previously
thought would be allowed under the rule, losing money in the
process. A bank trade group sued regulators over the dispute,
and lawmakers from both parties have backed the banks.
Trust-preferred securities, or TruPS, have hybrid
characteristics of debt and equity and can get favorable tax
Regulators said banks could keep certain collateralized debt
obligations backed by TruPS if they obtained them before the
Volcker rule was finalized on Dec. 10.