Scott Brown comes through on FinReg bill for MA – Dems prepare to gut Volcker Rule and exempt MASS Mutual Funds…
Well I predicted this was a done deal when Sen Brown voted for cloture on FinReg. He would only have done so if the Dem leadership guaranteed the big mutual funds in Massachusetts were protected (contrary to the wailing of Allahpundit at HA), they will be:
…Democrats worked Wednesday on an agreement that would weaken a provision known as the Volcker Rule, which would bar banks from investing their own money in hedge funds and private-equity firms.
Under the terms of the discussions, large banks could be allowed to invest up to 3% of their capital in these funds. This is higher than a 2% threshold under consideration a few days ago. Details remain in flux.
The changes are designed to win the support of Sen. Scott Brown (R., Mass.), who had said he would vote against the overhaul if financial companies, notably the big mutual funds based in his state, weren’t allowed to make small investments in different types of funds. Sen. Christopher Dodd (D., Conn.) and Mr. Brown met Wednesday to discuss a potential deal…….