Opportunities for Banking Entities Under the Joint Venture Provision of the Volcker Regulations

October 15, 2015

Under the Volcker Regulations (Regulations), banking entities are sharply restricted in their ability to invest in and sponsor entities that are treated as “covered funds.” During the rulemaking process, the Volcker Agencies (Agencies) decided to exclude a range of entities from being treated as covered funds.

An important category of entities that are excluded from covered fund treatment is a qualified joint venture. This exclusion has been attracting increasing interest from banking entities as well as their potential partners. The qualifying joint venture option allows a banking entity to expand its activities and market presence by pooling its resources and capital with one or more partners in order to operate a banking-related business, such as a lending business.

Read "Opportunities for Banking Entities Under the Joint Venture Provision of the Volcker Regulations."