In a partial victory for large banks, the FDIC and OCC approved relaxed margin rules covering uncleared swaps. The breadth of this victory wont be fully understood until the CFTC writes its parallel rules on the same subject.
Wall Street banks will escape billions of dollars in additional collateral costs after U.S. regulators softened a rule that would have made their derivatives activities much more expensive. Two agencies approved a final rule on Thursday that will govern how much money financial firms must set aside in derivatives deals. A key change from recent draft versions of the rule -- and the focus of months of debate among regulators -- cut in half what the companies must post in transactions between their own divisions. While the bank regulators’ approach is good news for Wall Street, all eyes now turn to the Commodity Futures Trading Commission, which is writing a parallel rule. Firms also would need that rule to be softened before claiming a clear victory.