On Wednesday, the House passed a bill that would further delay
the full implementation of the Volcker Rule – a highly
controversial rule introduced under the Dodd-Frank Wall Street
Reform and Consumer Protection Act that prohibits banks from
engaging in proprietary trading and from holding certain
investments. With the passage of this bill, compliance with the
Volcker Rule's provision prohibiting banks from holding
collateralized loan obligations would not be required until 2019, a
two-year delay. It is estimated that the total collateralized loan
obligation market totals somewhere between $84 billion and $105
billion, most of which is held by banks subject to the Volcker
Rule.
Even though the House passed this bill, it is unlikely that the
bill will survive the president's desk, even if it passes in
the Senate. On Monday, the White House announced that President
Obama would veto the bill if it makes it to his desk. It is
important to note that the bill is part
