GAO reviewed the Department of the Treasury, Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Securities and Exchange Commission, and the Commodity Futures Trading Commission's (individually, an agency, and collectively, the agencies) new rule on the treatment of certain collateralized debt obligations backed primarily by trust preferred securities with regard to prohibitions and restrictions on certain interests in, and relationships with, hedge funds and private equity funds. GAO found that (1) the final rule is being adopted by the agencies as a common interim final rule that would permit banking entities to retain investments in certain pooled investment vehicles that invested their offering proceeds primarily in certain securities issued by community banking organizations of the type grandfathered under section 171 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The interim final rule is a companion rule to the final rules adopted by the agencies to implement section 13 of the Bank Holding Company Act of 1956, which was added by section 619 of the Dodd-Frank Act; (2) the agencies complied with applicable requirements in promulgating the rule.
↧