The industry has until July 21, 2017, to sever most ties with private funds after the Fed signed off on the last of three 12-month extensions it was permitted to grant under the Dodd-Frank Act. That means the clock is winding down for Goldman Sachs to shed as much as $7.2bn of investments and for Morgan Stanley to unload as much as $3.4bn. Regulatory filings for other big banks don’t provide as much detail on investments they might have to exit to satisfy Volcker.
“For the most part, there isn’t a sense of panic,” said Kevin Petrasic, who runs the financial-services practice at White & Case and has been advising banks on complying with the prohibition on private funds. “There’s more sort of a sense of inevitability.”
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