From the FINANCIAL TIMES:
Congress edged closer to a landmark financial reform on Wednesday as Democrats patched up differences over restrictions on bank investments in hedge funds and private equity firms.
The battle between lawmakers urging moderation for Wall Street and those demanding punishing terms for banks came to a head in private meetings, producing a compromise that should see the language agreed late on Thursday and sent to the White House next week.
People involved with the talks said banks would be allowed to invest up to 3 per cent of their capital in hedge funds and private equity firms alongside clients – a significant concession to Wall Street and a compromise to the so-called Volcker rule, which is designed to stop deposit-taking banks from investing in risky activities…
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