Goldman and others seek Volcker delay to avoid big losses

Goldman Sachs Blink

Goldman Sachs has $7bn invested in private equity that it might have to sell at a loss. For Morgan Stanley, it’s $2.5bn.

Bloomberg News reports that the big sums explain why Wall Street has been lobbying regulators to delay a July deadline for complying with the Volcker Rule, which restricts banks from investing in private equity as part of a ban on making market bets with their own capital.

Banks argue that if they dump holdings quickly, they will have to accept discount prices. Analysts and lawyers for the financial industry say Wall Street’s concerns have begun to make headway with the Federal Reserve, which plans to decide on an extension soon.

Hit the link below to access the complete Bloomberg article:

Goldman Needs Volcker Delay to Avoid Private-Equity Losses

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