Blackstone to benefit from Volcker Rule


The celerity with which the Volcker Rule (Volcker Rule news) has led the biggest Wall Street banks to action has been surprising. Even before the rule was passed as part of Dodd-Frank, banks were already busy paring their proprietary trading units and selling alternative investment units. Some people thought the Volcker Rule was merely a good excuse for banks to shed certain units.

In any case, the winners in all of this are diversified private equity firms, notes Bloomberg. They are able to cherry pick a bit as top talent streams out of the leading investment banks. And they will no longer fiercely compete with proprietary units at top banks in many markets, such as buyouts and credit funds.

This is good news for the chief private equity firms, like the Blackstone Group. It might ease relationships somewhat on the banking side. The relationship may be more pure if the issues of competition isn't a perpetual gorilla in the room. Blackstone execs now think a $10 billion deal at least is possible as banks loosen the credit spigots.

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