The Securities Industry and Financial Markets Association (SIFMA) said not going ahead with the new accounting measure was a victory for capital formation.

The FDIC had proposed that if a financial instrument is “recorded at fair value on a recurring basis” under U.S. Generally Accepted Accounting Principles (GAAP), then any purchase or sale of the financial instrument would have amounted to proprietary trading. The SIFMA added, “The removal of the accounting prong is a positive step forward in ensuring the regulatory definition of ‘trading account’ does not go beyond the statutory definition and Congressional intent.”

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