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.
