Monday, March 4, 2013

Crafty: Goldman Has Already Figured A Way Around Regulation To Some Of The Riskiest Investments On Wall Street




Goldman Sachs is trying to work around a financial reform regulation to keep investing in the profitable, albeit risky, business of buying and selling companies, sources familiar with the new business told Reuters’ Jessica Toonke; and Lauren Tara LaCapra.

The Volcker rule - named for former Federal Reserve Chairman Paul Volcker and part of the Dodd-Frank financial reform law - is expected to limit bank investments in private equity funds, but not necessarily private equity-style investments outside of a formal fund structure.

In a bid to pool money for deals without raising a private equity fund, the Wall Street bank has been lining up clients who are willing to put money into accounts set up to invest in private equity-style deals, the sources said. Goldman would also set aside some of its own money and partner capital into separate accounts for the same purpose, they said….

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