The way I read it is, they're not even entirely sure how this would affect the Private Equity funds Banks Operate unless they invest direct.Entities like Citi & Goldman have used this as a way to "advertise" to clients by showing their interests are alligned. Other Banks run PrivateEquity Funds (JP Morgan) without directly investing but still have a controlled interest. On the flip side these banks won't be able to "run andoperate Hedge Funds".Originally Posted by HOVKid
Bro, I am the General Counsel of a multi-billion dollar private equity fund. Don't talk to me about not knowing what this means.Originally Posted by cguy610
^ Might as well post random stuff in here. It's obvious the people who commented so far don't know the difference between banks, private equity funds, and hedge funds.
YOU sir, have no idea what something like this could mean. Bsically, Obama decided that banks shouldn't invest in certain things because he deems them too risky. %$@ is the president of the US making determinations as to what is "too risky" for banks to invest in? The fund I work for has NEVER lost money for its investors, some of whom are the large banks noted in the article.
I think the turning point was when the last of the Investment Banks turned "Banks" and had access to direct Fed Funds and then started really hitting their own trading accounts.