WASHINGTON (Reuters) - The U.S. Federal Reserve said on Thursday banks do not need to sell certain securities immediately under the Volcker rule, but instead have until July 2015 to decide if the investments comply with the new rules.
Small and mid-sized banks worried that collateralized debt obligations backed by trust-preferred securities were banned by the new rules. Even though the Volcker rule does not take effect until 2015, some banks said accounting rules meant they would face losses sooner.
Regulators on Thursday sought to clarify that banks can use the full compliance period to determine which holdings are allowed under the rules.
(Reporting by Emily Stephenson)