Banks Poised to Win on Venture Capital in Volcker Rollback (2)

Venture capital funds could be poised to see bigger cash infusions from Wall Street banks as U.S. regulators move closer to easing post-crisis restrictions on such investments.

The Federal Reserve’s board voted 4-1 Thursday to propose a multi-agency plan for walking back investment limits imposed in 2013 as part of the Volcker Rule’s trading curbs. The Commodity Futures Trading Commission, Federal Deposit Insurance Corp., Securities and Exchange Commission and Office of the Comptroller of the Currency also signed off on the proposal, which loosens several investment restrictions banks have faced for years.

Venture capital funds were lumped ...