Private equity: What Volcker rule?

The Volcker rule still lurks, threatening banks’ involvement in private equity and hedge funds, but it seems Wall Street is marching on regardless. Citi is reportedly looking to raise $3.5 billion of private equity and hedge fund capital, and JPMorgan is pushing ahead with talks to buy Gávea Investimentos, a $5 billion Brazilian hedge fund and private equity group.

Banks have been pressuring Congress for exemptions to the part of the proposal that inhibits them from having interests in private equity and hedge funds, and the moves by Citi and JPMorgan seem to point to confidence that they will succeed.