Goldman Avoids Volcker Ban Through Real-Estate Exposure

Goldman Sachs Group Inc (NYSE:GS) is reportedly avoiding the Volcker ban by contributing 20% in capital through a new fund that would make investments in commercial real estate-backed loans, according to a Wall Street Journal report. Citing known sources, Craig Karmin and Justin Baer of The Wall Street Journal point out that Goldman Sachs Group Inc (NYSE:GS) is also making direct investments in real-estate assets. Volcker rule The Volcker rule, a centerpiece of the 2010 Dodd-Frank financial-overhaul legislation, was approved by government agencies earlier this month. The rule caps banks’ ownership of hedge funds and other similar investments at 3%…