House Bill Would Clarify Ownership Interest Definition for CLOs under Volcker Rule

U.S. Congressman Andy Barr (R-KY) introduced a bill (H.R. 4167) to amend the Volcker Rule to exclude certain collateralized loan obligations (“CLOs”) from the prohibition against a “banking entity” (essentially a bank or any affiliate of a bank) acquiring or retaining an ownership interest in a hedge fund or private equity fund. 

The bill was referred to the House Committee on Financial Services on March 6, 2014. 

See: Discussion Draft of H.R. 4167; Bill Summary and Status Report.
Related news: Trade Associations Request Further Clarification Regarding Ownership Interests for Debt Securities under New Volcker Rule Regulations (January 8, 2014); Trade Associations Request Clarifications Regarding Holding Debt Securities under New Volcker Rule Regulations (December 26, 2013).