The U.S. House Financial Services Committee today overwhelmingly approved a bill that would grant a two-year extension to the deadline for banks to divest in CLOs that they are prohibited from holding under Volcker Rule.

The Loan Syndications and Trading Association applauded the measure from Rep. Andy Barr (R-KY), saying in a weekly newsletter issued today that the bill’s 55-3 vote “sends a strong bipartisan message to regulators that Congress wants and expects them to address – and fix – the disruption to the CLO market caused by the Volcker rule.”

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