Despite pushback from some regulators and Democrats in Congress, five federal regulatory agencies on Thursday finalized a roll back to the Volcker rule prohibition that will allow banks—in certain circumstances—to invest or sponsor hedge funds and private equity funds, also known as covered funds.
The Securities and Exchange Commission (SEC) announced the change in a press release, joined by the Commodity Futures Trading Commission (CFTC), the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and Federal Reserve Board.
