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ARTICLE · 20 DECEMBER 2013

The Volcker Rule—Application To Securitization Transactions

Mayer Brown
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The federal financial agencies on December 10, 2013, approved joint final regulations (the "Final Regulation") implementing section 619 of the Dodd-Frank Act, commonly referred to as the Volcker Rule.

United StatesFinance and Banking
Carol Hitselberger
Carol Hitselberger
David Sahr
David Sahr
J. Bradley Keck
J. Bradley Keck
J. Paul Forrester
J. Paul Forrester
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Keywords: federal financial agencies, final regulation, Volcker Rule, BHCA

The federal financial agencies on December 10, 2013, approved joint final regulations (the "Final Regulation") implementing section 619 of the Dodd-Frank Act, commonly referred to as the Volcker Rule. Section 619 added a new section 13 to the Bank Holding Company Act of 1956 (the "BHCA") that generally prohibits any banking entity from engaging in proprietary trading and from acquiring or retaining an ownership interest in, sponsoring, or having certain relationships with, a hedge fund or a private equity fund, subject to exemptions for certain permitted activities.

Over 70 pages in rule text and nearly 900 pages of supplementary information (the "Preamble"), the Final Regulation made numerous changes to the proposed regulations (the "Proposal") which had been subject to an unprecedented number of comment letters. These changes address many, but far from all, of the concerns raised in the

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