Banks Happy To Take Extra Five Years To Comply With The Law Since You Offered

Hey, that "Volcker Rule," can we NOT?
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The Volcker rule has technically been in effect for a little over two years now. You probably haven’t noticed because no one has to actually observe it yet, since the Dodd-Frank law allowed for three one-year extensions for banks to get out of the hedge and private equity funds they’re no longer allowed to invest in. Unsurprisingly, the banks have made use of all three. Dodd-Frank also gives banks the right to ask for another five years to get rid of the most illiquid holdings that they couldn’t get rid of in time without essentially giving them away.

Well, guess what?

Big Wall Street banks are asking the U.S. Federal Reserve to grant them an additional five-year grace period to comply with a financial reform regulation known as the Volcker rule, people familiar with the matter said….

Those seeking the extension include Goldman Sachs Group Inc, Morgan Stanley, JPMorgan Chase & Co and some other banks, the sources said.

This should surprise no one, since Goldman all but gave it away last week. Now, everyone’s got until next June to find some way to classify whatever they’ve got left as “illiquid” so that Paul Volcker will have to live until he’s 94 to see his will done.

The Fed is demanding more details about why the funds, or their underlying assets, are considered illiquid, how much time it would take to exit the investments and what efforts have been made to exit investments sooner, sources said.

Wall St. banks ask Fed for vie more years to comply with Volcker rule [Reuters]

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