| WASHINGTON, April 29
WASHINGTON, April 29 The U.S. House of
Representatives approved a bill on Tuesday that would scale back
the Volcker rule to exempt a type of securities that banks want
to keep on their books.
The Volcker rule, named for former Federal Reserve Chairman
Paul Volcker, bars banks from making risky trades with their own
money and limits their investments in certain funds. It was
required by the 2010 Dodd-Frank law.
When regulators finalized the rule in December 2013, banks
complained it would force them to sell some collateralized loan
obligations (CLOs), or bundles of business loans packaged as
securities. Some lawmakers sided with the firms, saying they did
not intend to force banks to dump the investments.
The House approved a bill that would exempt from the rules
any CLOs issued before Jan. 31, 2014.
Representative Andy Barr, a Kentucky Republican who
introduced the bill, called it a "a bipartisan clarification
that fixes a regulatory problem" in a statement after the vote.
The bill still must go through the Democrat-controlled U.S.
Senate, where its passage is unclear. Democrats have been
hesitant to consider any adjustments to Dodd-Frank for fear its
critics would try to create an opportunity to revamp the law.
Regulators already had adjusted the Volcker rule to let
banks hold onto another type of security after small firms
claimed it would cause them to lose money.
(Reporting by Emily Stephenson. Editing by Andre Grenon)