Fed clarifies ‘push out’ provisions for foreign banks’ uninsured U.S affiliates

The Federal Reserve approved an interim final rule clarifying the treatment of uninsured U.S. branches and agencies of foreign banks under Dodd-Frank’s so-called swaps push-out provisions. Section 716 of Dodd-Frank will require entities that have access to certain federal assistance to move their swaps activities to an affiliate. The rule establishes a process whereby state member banks and uninsured state branches or agencies of foreign banks may seek additional time to exit the swaps business. Read on for the details.