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

[turbinetree]

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

[alwaysinasnit]

1. K&R Thanks for posting.

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

And we will, yet again.

[turbinetree]

4. Your welcome..................

In my twisted way of thinking it didn't work for them the first time like they wanted and got caught so they are going to do it again..................just now it will come in drips.........................

[cstanleytech]

2. What is the point of having rules to prevent major problems if said rules can be waived?

[yaesu]

3. Banks get what banks want, no questions asked. Buying politicians is a good investment. nt

[MoonlitKnight]

5. Just the first of many to come

Lots of oil shale companies are highly leveraged with junk bonds that have derivatives.

[turbinetree]

6. Yes, they are just ask the US Senators from the state of Oklahoma and the Harold Hamm family .....

they are always currying favors............................