Manchin, Wicker Statement on Regulators Volcker Rule Fix
Washington, D.C. – U.S. Senators Joe Manchin (D-W.Va.) and Roger Wicker (R-MS) today issued the following statement on financial regulators’ decision to carve out certain securities owned by small banks from the Volcker Rule, a move that will protect community banks from losing millions of dollars. Senators Manchin and Wicker introduced similar legislation last week and sent a letter to financial regulators last month demanding they take action to protect community banks.
“This oversight would have not only punished community banks, but it would also have undermined U.S. economic growth and our financial stability in a time when our economy is just starting to grow,” Senator Manchin said. “I am pleased that our financial regulators have agreed to carve out a technical glitch in the Volcker Rule that will protect the majority of community banks so they can continue to make smart investments that will help boost economic prosperity across America.”
“The rule as it was written would not have made any bank safer,” Senator Wicker said. “Rather, it would have forced community banks to divest their TruPS assets at pennies on the dollar. Although not as comprehensive as the bills I am supporting on this issue, I commend the regulators for recognizing the unintended consequences of the original rule.”
Background:
On January 9, 2014, Senators Manchin and Wicker introduced legislation to demand regulators fix the technical error under the Volcker Rule. For more information, please visit Senator Manchin’s website. To read a copy of this legislation, please click here.
On December 19, 2013, Senators Manchin, Wicker and Mark Kirk (R-IL) sent a letter to federal officials who oversee banking rules to request the exemption of community banks from the Volcker Rule. To read the letter, please visit Senator Manchin’s website.
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