Banks Push U.S. Fed to Delay Volcker Rule : WSJ
Banks are lobbying U.S. policy makers for a delay of up to seven years from a provision requiring them to sell investments in private-equity and venture-capital funds, the Wall Street Journal reported, citing people familiar with the matter.
Bank officials, trade groups and lawmakers are quietly pressing the Federal Reserve for a multiyear delay of the rule that limits their investments in private-equity and venture-capital funds, the Journal said. (http://on.wsj.com/1l12Pi8)
The "Volcker rule," part of the Dodd-Frank law, restricts banks' ownership stake in hedge funds and private equity funds.
The rule prohibits banks from making speculative bets with their own money.
A delay of the rule would affect large banks such as Goldman Sachs Group Inc, JPMorgan Chase & Co and Morgan Stanley, the Journal said.
The private equity business has become less appealing in general to banks because of the 2010 Dodd-Frank financial reform law. The Volcker rule, expected to be implemented in a few years, prohibits banks from investing in any fund they do not manage.
http://www.nytimes.com/reuters/2014/08/12/business/12reuters-usa-fed-volcker.html?hp&action=click&pgtype=Homepage&version=WireFeed&module=pocket-region®ion=pocket-region&WT.nav=pocket-region
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