UBS together with two other banks has received an extension on the compliance with a rule in the U.S., which regulates proprietary trading of investment banks.
The Volcker Rule, named after former Fed Reserve Chairman Paul Volcker, limits the extent of trading that investment banks can do with their own assets. The rule is part of the Dodd-Frank Wall Street reform law of 2010, which was introduced as a consequence of the financial crisis of the past decade.
More Time for Divestments
The Fed has now granted an extension of a much as five years on the compliance with the rule to three banks, UBS, Deutsche Bank and SVB Financial Group, «Reuters» reported. The authority said the three needed more time to divest illiquid funds in order to comply.
The rule meant that investment banks had to sell stakes in hedge funds and private equity funds.
