On December 16, 2014, section 716 of the Dodd-Frank Act (also known as the “Swaps Push-Out Rule”) was significantly narrowed in scope by a provision in the Consolidated and Further Continuing Appropriations Act 2015 (“Spending Bill”), which was signed into law by President Obama. The Swaps Push-Out Rule provides that a bank swap dealer is not eligible for any federal assistance,  including federal deposit insurance, in connection with its swap activities. Additionally every bank swap dealer was intended to transfer all or part of its   swap portfolio to affiliated non-bank entities before the effective July 2015 deadline. The Spending Bill amends Section 716 so that a bank can continue to be a counterparty to all types of swaps except for certain “structured finance swaps.”

The text of the amendment can be found on pages 249-250 of the Spending Bill and is available at:

 http://www.gpo.gov/fdsys/pkg/BILLS-113hr83enr/pdf/BILLS-113hr83enr.pdf