Laundry Room Chronicles: Will Banks Let Their PE Go?

My weekly segment with Reuters Insider is about the recent news that Barclays Private Equity plans to spin out of its parent bank sometime this summer, and how the so-called Volcker Rule could cause other banks to shed their in-house PE units.

The anchor doesn’t ask me but, for the record, I generally oppose this provision (whether it be the current weak language or stronger Merkley-Levin amendment). We also don’t get into how the rule could eventually impact insurance company investments in private equity (time constraints and all), but it’s a feature to keep ours eyes on. Finally, I should have mentioned that all the proposed legislation has a lengthy phase-in period, so Goldman Sachs Capital Partners, Metalmark Capital, etc. will not be forced to spin out immediately.

Per usual, filming just inches away from an ancient washer/dryer set:

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