Volcker Revamp Could Free Banks to Boost Investment Fund Stakes
- Regulators poised to adopt overhaul of proprietary trading ban
- FDIC sets Aug. 20 vote on final rule, other agencies to follow
Photographer: John Taggart/Bloomberg
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Wall Street banks will be given clearer rules for how they can invest in private equity and hedge funds when U.S. regulators roll out their overhaul of Volcker Rule trading restrictions next week, according to people familiar with the matter.
Five agencies are poised to approve a final rule that simplifies the Dodd-Frank Act ban on banks betting with their own cash. It could also free them to put more money in investment funds by removing uncertainty over how such activity would be treated, said the three people who requested anonymity because the details aren’t yet public.