SVB Financial Group, the holding company for Silicon Valley Bank, the institution that issues annual forecasts and reports on the California wine industry, was mentioned in the same breath as Swiss banking giant UBS Group and Germany’s Deutsche Bank by the Federal Reserve Bank.
The Fed gave each of the banks extensions of up to five years on complying with part of the Volcker Rule that deals with illiquid funds, Reuters reported.
The central bank said the three banks need more time to divest legacy illiquid funds in order to comply with the rule’s limits on their stakes in private equity and hedge funds.
Under the Volcker Rule, U.S.-based banks and domestic arms of all foreign banks are prohibited from investing more than 3 percent of their own cash in hedge funds and private-equity funds past a deadline of July 2017.
The Fed granted similar leeway to Goldman Sachs, Morgan Stanley, JPMorgan, Citigroup and Bank of America in December.
Published: June 9, 2017
