In the meantime, Goldman Sachs is taking full advantage (and full risk) for not having these rules finalized. They have just set up other accounts to which they and their clients pool their money, both monies to be used to invest in private equity deals. By not meeting their deadlines, regulators are supporting the bank's riskier investments. Perhaps regulation delay will become no regulation at all in the future!
Apparently, a syndicate is different from a traditional private-equity fund. Basically Goldman Sachs is doing proprietary trading using the present loopholes that already exist in the Volcker rule-making process. Of course, Goldman Sachs is trying to "educate" the Fed and other regulators "on the best way to write the rules." How ironic! That is how Goldman has been doing business in the past and how they plan to do business into the future. They are not worried about financial crises as they are commercial banks backed by federal insurance.
Why should they worry?
Goldman Sachs Has Already Figured a Way Around Regulation to Some of the Riskiest Investments on Wall Street
By Jessica Toonkel and Lauren Tara LaCapra - Reuters (Business Insider)
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The Volcker rule - named for former Federal Reserve Chairman Paul Volcker and part of the Dodd-Frank financial reform law - is expected to limit bank investments in private equity funds, but not necessarily private equity-style investments outside of a formal fund structure.
In a bid to pool money for deals without raising a private equity fund, the Wall Street bank has been lining up clients who are willing to put money into accounts set up to invest in private equity-style deals, the sources said. Goldman would also set aside some of its own money and partner capital into separate accounts for the same purpose, they said.