Banks, including some of the nation’s largest, can have an extra two years—and possibly even a third—to prepare for new restrictions that kick in this summer if they are designated as swap dealers.
Section 716 of the Dodd-Frank Act requires federal depository institutions deemed to be “swap entities,” to “push out” nonconforming activities into a separate entity that is prohibited from receiving taxpayer-funded assistance. The Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, and Federal Deposit Insurance Corporation jointly issued guidance that section 716’s effective date is July 16, 2013.
