The Federal Reserve is giving global systemically important banks another five years to wind down their positions in fund holdings banned by the 2010 Dodd-Frank act, specifically the Volcker rule. The banks have been able to hang on to fund holdings deemed illiquid, arguing that if they were forced to sell it would trigger substantial losses. While the five largest banks all have capital markets groups that specialize in matching buyers and sellers of even the most illiquid instruments, they have been able to persuade the Fed they should be given another five years to wind down their illiquid fund holdings.
展开▼
