The U.S. Federal Reserve said on Thursday banks do not need to sell certain securities immediately under the Volcker rule, but instead have until July 2015 to decide if the investments comply with the new rules. Small and mid-sized banks worried that collateralized debt obligations backed by trust-preferred securities were banned by the new rules. Even though the Volcker rule does not take effect until 2015, some banks said accounting rules meant they would face losses sooner. Bank regulators last week approved the final Volcker rule, which restricts banks' ability to make bets with their own money and limits their investments in certain funds. Lobby groups and some lawmakers have since called on regulators to address what they called an unintended consequence. Small and mid-sized banks said that even though the rules do not officially take effect until 2015, accounting rules meant they could face losses sooner. Regulators on Thursday sought to clarify that banks can use
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