The article looks at a trend among U.S. banks towards capitalizing from the exception to the ban on proprietary trading under the Volcker rule or the Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, that allows them to invest through Small Business Investment Companies (SBIC). Topics covered include the limitations on SBIC loans, the risks associated with the emergence of new loan partnerships, and the process of forming SBIC.
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