Hedge Funds Politics & Regulation

Barney Frank and Goldman Sachs square off on Volcker rule wrangling

by

Banks argue that clients want “skin in the game;” Volcker opposes watering down; Corzine weighs in

The fate of some of the largest hedge funds is being decided in Washington right now. But while Goldman Sachs and other banks are lobbying to keep capital in their hedge funds, Paul Volcker and Barney Frank are pushing back.

Congress is scrambling to meld House and Senate versions of financial reform legislation, and the fine print chosen by lawmakers before the end of the month will have major ramifications for hedge funds tied to large banks, most notably the $50.4 billion in hedge fund assets managed by JPMorgan, including $17.9 billion in its Highbridge Capital Management subsidiary and