Goldman Sachs makes bid to change speculation-based Volcker rule: report
AFPNEW YORK--Goldman Sachs is seeking changes to the Volcker rule, which keeps banks from speculative trades in their own accounts, to protect its merchant-banking unit, The Wall Street Journal reported Tuesday.
October 11, 2012, 12:11 am TWN
The rule, named after former Federal Reserve Chairman Paul Volcker, was part of the sweeping reforms introduced in the wake of the 2008 recession and aimed at preventing another meltdown of the financial sector.
It forbids banks from actively trading in their own accounts to boost profits, what is known as proprietary trade.
Goldman is lobbying U.S. regulators to allow its merchant-banking unit's credit funds, which mostly concern pension funds and insurers, to be exempted from the rule, the Journal said, citing people briefed on the matter.