SEC, other agencies review treatment of trust preferred-backed CDOs

By Jennifer Chiou

New York, Dec. 31 - The Federal Reserve Board, the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency and the Securities and Exchange Commission announced that they are reviewing whether it would be appropriate and consistent with the Dodd-Frank Act to forgo subjecting collateralized debt obligations backed by trust preferred securities to the investment prohibitions under the "Volcker Rule."

The rule is under section 619 of Dodd-Frank.

According to a press release, the agencies intend to address the matter no later than Jan. 15.

The accounting staffs of the agencies said that any actions in January that occur before the issuance of Dec. 31 financial reports should be considered in the preparation of those reports.

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