Tag Archive for Goldman

Goldman loses the Volcker Rule battle over credit funds – Sober Look

About a year ago we discussed the argument made by Goldman’s lawyers that under the Volcker rule, banks should be allowed to invest in credit funds (see post). The rationale is that if banks can lend to companies directly, why can’t they invest in funds who make the same types of loans? In particular, Goldman was defending its lucrative mezzanine fund business which provides junior capital to companies. Goldman and other banks compete with private equity firms such as Blackstone in managing credit portfolios for clients.