SEC fears US banks still tied to non-guaranteed units

Agency powerless to address 'implicit guarantees' says chairman Mary Jo White

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Mary Jo White, SEC chair

US banks that trade from non-guaranteed units in order to avoid Dodd-Frank Act rules could still choose to save their stricken affiliates, commissioners at the Securities and Exchange Commission (SEC) have warned. Despite that obvious gap, SEC chair Mary Jo White said the commission is limited in the steps it can take to close it. Questions about non-guaranteed affiliates have been raised in recent weeks after it became clear that US banks were trading from them to avoid subjecting foreign cl