Goldman real estate play skirts Volcker ban

US bank raises more than $1 billion for new property fund, which appears to navigate around tough restrictions on investment funds

The Volcker rule prohibits banks from owning more than 3% of a hedge fund or private equity portfolio.

So why did Goldman Sachs tell would-be investors that it would contribute up to 20% in a new fund that makes loans backed by office buildings, hotels, shopping centres and other properties?

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Ray Dalio Sells Last Stake in Bridgewater, the Hedge Fund That Made Him a BillionaireExternal link

Ray Dalio Sells Last Stake in Bridgewater, the Hedge Fund That Made Him a Billionaire