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.
We’ve talked a lot about the so-called Volcker Rule. I’ve called it a “cop-out” and “joke” and tracked its bloated path from 300 pages to nearly 1,000.
After two years of review and lengthy revisions, all five regulatory agencies unanimously passed the controversial Volcker Rule on Tuesday.
Federal regulators will vote tomorrow (Tuesday) on the Volcker Rule, and this latest draft includes stricter language than Wall Street had expected…
Let’s talk about the so-called Volcker Rule.
When the Dodd-Frank Act was signed into law in 2010 – the bank-busting, save the system, “we’ll never again have a financial meltdown that could destroy the world” legislation – it was more of an outline.
On July 21, the Dodd-Frank Act turned three years old.
But, unlike most three-year-olds who can walk and talk, this one hasn’t gotten out of the crib yet…
There is a hole in the Volcker Rule that banks are trying exploit. But before jumping to conclusions, let’s walk through the following logic. The Volcker Rule prohibits significant proprietary trading and limits banks’ investments in hedge funds and pr…
The Dodd–Frank financial reform is killing the single name corporate CDS market. Liquidity in this market is drying up quickly. This is due mostly to dealers’ inability to take positions when they make markets (Volcker Rule) and a cumbersome clearing…