WASHINGTON (Reuters) - U.S. officials will give JPMorgan Chase, Citigroup, Bank of America and several other big firms two years to comply with a controversial Dodd-Frank requirement that they push some swaps trading out of the bank.
The Office of the Comptroller of the Currency said on Tuesday it had sent letters to seven banks granting them transition periods. The agency had said it expected to give banks extra time to comply with the push-out requirement.
The requirement, part of the 2010 financial law, attempts to keep certain risky trading activity out of entities that receive government backstops, such as deposit insurance or access to the Federal Reserve’s discount window.
Banks must push swaps activity into separate arms, or else forgo federal support, to comply.
The rule officially takes effect on July 16. The OCC said it also had granted transition periods to Wells Fargo, Morgan Stanley, US Bancorp and HSBC.
Reporting by Emily Stephenson; Editing by Bob Burgdorfer