Sections
Shortcuts
Business

Fed gives banks 2 more years on risky securities

This is a summary. To read the whole story subscribe to BostonGlobe.com

The Federal Reserve is giving US banks two more years to ensure their holdings of certain complex and risky securities don’t put them afoul of the new Volcker Rule.

The Fed’s move, announced Monday, didn’t give banks an outright exemption from the Volcker Rule’s ban on high-risk investments. Wall Street banks had sought an exemption, and the leading Wall Street lobbying group expressed disappointment with the Fed’s move.

The Volcker Rule, adopted in December, is intended to limit trading bets that could implode at taxpayers’ expense. That kind of risk-taking helped trigger the 2008 financial crisis. Congress mandated the Volcker Rule in its financial overhaul.

The Fed gave banks until July 2017.

Full story for BostonGlobe.com subscribers.

Get the full story with unlimited access to BostonGlobe.com.

Just 99 cents for four weeks.

Sections
Shortcuts

Share