ABA Drops Lawsuit Against Volcker Rule

The American Bankers Association (ABA) said Wednesday it would drop a lawsuit challenging a provision of the Volcker Rule mandating community banks to divest their holdings in some CDOs. ABA’s threat against Volcker Rule In December, the American Bankers Association urged regulators to scrap new provisions under the Volcker Rule, threatening legal action if the agencies mandate a portion of Volcker Rule relating to some collateralized debt obligations. The ABA said in a federal court filing that it was seeking relief from a portion of the regulation that analysts, bankers and lawyers have said may force some financial institutions to…