Dodd-Frank prop desk carve-out creates restructuring risks

WASHINGTON, DC – Requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act for financial services firms to spin off their proprietary trading operations into independent units have left questions unanswered over how firms should handle restructures. How these new, spun-off firms will be structured is unclear, as the US supervisory agencies chew over how to turn Dodd-Frank into regulatory rules. It is not yet understood whether prop trading arms must be created as