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Thu Mar 26, 2020, 03:28 PM

Exclusive: Capital One got CFTC waiver after oil price plunge increased swap exposure - sources [View all]

Source: Reuters

BUSINESS NEWS MARCH 26, 2020 / 6:08 AM / UPDATED 16 MINUTES AGO

WASHINGTON/NEW YORK (Reuters) - U.S. lender Capital One Financial Corp got a waiver from the Commodity Futures Trading Commission (CFTC) after plunging oil prices increased the bank’s derivatives exposure above a key regulatory threshold, according to two sources with knowledge of the matter.

On Friday, the CFTC said it would temporarily exempt a U.S. bank from a requirement to register as a “Major Swap Participant” even though its growing energy swaps exposure would technically require it to do so by the end of the next quarter.

The CFTC did not name the bank on Friday, but the two sources told Reuters it was Virginia-based Capital One, which is best known for its retail lending and credit card business.

The regulator and Capital One declined to comment on the identity of the bank on Wednesday. A spokesman for the CFTC said it issued the waiver to protect the bank and its energy clients from undue disruption, given the unprecedented market conditions over the past month amid the coronavirus outbreak.

Editing by Michelle Price and Sonya Hepinstall



Read more: https://www.reuters.com/article/us-health-coronavirus-capitalone-cftc-ex/exclusive-capital-one-got-cftc-waiver-after-oil-price-plunge-increased-swap-exposure-sources-idUSKBN21D1BC?il=0



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Call me a charlatan or an idiot, didn't the taxpayers go through this once before

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Reply Exclusive: Capital One got CFTC waiver after oil price plunge increased swap exposure - sources [View all]
turbinetree Mar 2020 OP
alwaysinasnit Mar 2020 #1
turbinetree Mar 2020 #4
cstanleytech Mar 2020 #2
yaesu Mar 2020 #3
MoonlitKnight Mar 2020 #5
turbinetree Mar 2020 #6