{"id":5662,"date":"2014-09-03T00:00:00","date_gmt":"2014-09-03T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2014\/09\/us_banks_may_need_644b_in_coll"},"modified":"2022-05-06T11:45:45","modified_gmt":"2022-05-06T16:45:45","slug":"us-banks-may-need-644b-in-coll","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/us-banks-may-need-644b-in-coll\/","title":{"rendered":"US Banks May Need $644B in Collateral Under Revised Swaps Rules"},"content":{"rendered":"<p>The revised rules for non-cleared swaps could require banks to have $644 billion in collateral to offset risks involved in swaps trading among themselves. The Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency, and the Federal Reserve adopted a proposal for collateral requirements for swaps traded between firms, manufacturers, banks, and others this week. However, the Securities and Exchange Commission and the Commodity Futures Trading Commission still have to vote on the regulations.<\/p>\n<p>The proposal seeks to lower risk and improve transparency by mandating that swaps be guaranteed at central clearinghouses and are traded on platforms. It also looks to limit the effect on global liquidity and smaller companies, as well as free end-users from requirements.<\/p>\n<p>Ever since the 2008 economic crisis, when unregulated trades played a part in the financial meltdown, regulators have wanted to enhance oversight of the global swaps market. Under the proposed rules, banks would need to finance collateral and hold custody accounts that might not be as profitable as other uses they could engage in instead.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/us-banks-may-need-644b-in-coll\/\"  title=\"Continue Reading US Banks May Need $644B in Collateral Under Revised Swaps Rules\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The revised rules for non-cleared swaps could require banks to have $644 billion in collateral to offset risks involved in swaps trading among themselves. The Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency, and the Federal Reserve adopted a proposal for collateral requirements for swaps traded between firms, manufacturers, banks, and [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3972],"tags":[],"class_list":["post-5662","post","type-post","status-publish","format-standard","hentry","category-swap-transactions"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>US Banks May Need $644B in Collateral Under Revised Swaps Rules &#8212; Investor Lawyers Blog &#8212; September 3, 2014<\/title>\n<meta name=\"description\" content=\"The revised rules for non-cleared swaps could require banks to have $644 billion in collateral to offset risks involved in swaps trading among themselves. &#8212; September 3, 2014\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/us-banks-may-need-644b-in-coll\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"US Banks May Need $644B in Collateral Under Revised Swaps Rules &#8212; Investor Lawyers Blog &#8212; September 3, 2014\" \/>\n<meta name=\"twitter:description\" content=\"The revised rules for non-cleared swaps could require banks to have $644 billion in collateral to offset risks involved in swaps trading among themselves. &#8212; September 3, 2014\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"US Banks May Need $644B in Collateral Under Revised Swaps Rules &#8212; 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