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Goldman Sachs lobbies regulators to amend Volcker rule - WSJ

Oct 9 (Reuters) - Goldman Sachs Group Inc has approached U.S. regulators to seek changes in the Volcker rule as it looks at preserving its merchant-banking unit, the Wall Street 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 hedge funds and private-equity funds.

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

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

If the regulators do not favor this proposal, Goldman is prepared to withdraw its interest in its current credit funds and may have an alternative to start new credit funds, Wall Street Journal reported, citing the people briefed on the efforts.

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

(Reporting by Krithika Krishnamurthy in Bangalore; Editing by Ryan 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