WASHINGTON — Banks could invest heavily in or even sponsor venture capital funds under a proposed change to a post-crisis rule that was intended to limit their risk-taking.
The proposal, unveiled Thursday by the Federal Reserve and other banking agencies, would revamp the Volcker Rule, which was created as part of the 2010 Dodd-Frank law. The rule restricts banks like Goldman Sachs and J.P. Morgan from making risky bets with customer deposits and generally prevents firms from sponsoring or investing in private equity and hedge funds.
