Apollo, Carlyle Cheer Volcker Rule

Dec 11 2013 | 12:02pm ET

If banks are grumbling—quietly—about the new restrictions they face under the Volcker rule, approved yesterday, the alternative investments industry is celebrating a new opportunity.

The new regulation bars banks from proprietary trading and strictly limits their alternative investment activities. Banks have been shedding units that might offend the rule over the past few years, and some of their most talented traders have begun moving to hedge funds. And that's only the beginning, according to Apollo Global Management's Marc Rowan.

"The scale of dislocation is just starting," he said during a speech at a Goldman Sachs Group Inc.’s financial services conference in New York.

"There is still going to be a need for credit," he continued. Regulators "don't want that need for credit to go unmet, they just don't want that credit to be met at the price of a government guarantee. I believe that we are in a very good place, allowing investors to reap the reward and suffer the losses associated with those judgments."

Carlyle Group co-founder William Conway, meanwhile, sounds like he's ready for a holiday shopping spree at Wall Street's fire sale.

"One benefit of Volcker is you can buy good assets from banks that really have to sell them," he told conference attendees.


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Often seen as a passion project, or part of a philanthropic venture, rare and fine stringed instruments offer an exciting option to diversify one’s investment portfolio while providing an opportunity for an exceptional long-term investment.