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Goldman Sachs lobbies regulators to amend Volcker rule - WSJ

Oct 9 (Reuters) - Goldman Sachs Group Inc hasapproached U.S. regulators to seek changes in the Volcker ruleas it looks at preserving its merchant-banking unit, the WallStreet Journal reported.

The rule, introduced in the aftermath of the 2008 recession,puts a cap on the amount of capital a bank can pledge to hedgefunds and private-equity funds.

Goldman wants its merchant-banking unit's credit funds,which cater mainly to pension funds and insurers, to be exemptedfrom the rule, Wall Street Journal said, citing people briefedon the efforts.

Goldman Sachs was unavailable for comment outside of U.S.business hours.

If the regulators do not favor this proposal, Goldman isprepared to withdraw its interest in its current credit fundsand may have an alternative to start new credit funds, WallStreet Journal reported, citing the people briefed on theefforts.

Rival Morgan Stanley , which planned to raise a newmulti-billion-dollar global infrastructure fund in September,was also hit by the Volcker rule.

(Reporting by Krithika Krishnamurthy in Bangalore; Editing byRyan Woo)

((krithika.k@thomsonreuters.com, within U.S. +1 646 223 8780,outside U.S. +91 80 4135 5800)(Reuters Messaging:krithika.k.thomsonreuters.com@reuters.net))

Keywords: GOLDMANSACHS VOLCKER/WSJ