U.S. banking regulators have made new proposals that would allow for banks to take stakes in venture capital and loan funds which would further weaken the post crisis Volcker rule regulations; so long as banks were already allowed to own the assets already they would be permitted to make investments in funds that own bonds and loans; venture capital investments would no longer be covered by the rule; Securities and Exchange Commission chairman Jay Clayton said to the FT that enacting the amendments could “facilitate capital formation, improve competition and market efficiency along a number of dimensions, and do so without increasing risks to investors.”; consumer advocate groups were against the move saying that this will allow banks to go back to the risky behavior that help enable the financial crisis. Financial Times
