Multiple sources tonight say that in all likelihood the hedge fund loophole (known as a 'de minimis exemption') will be included in the offer that the conference committee considers this week.
"I think Senator Dodd's doing a wonderful job," Brown said tonight. "We're trying to address everybody's concerns. Obviously it's important...for Massachusetts businesses, and businesses throughout the country to continue to operate as they have as many many years."
I asked whether any of those businesses are getting input into the crafting of the final Volcker rule.
"Of course they do," he said. "Of course they do."
Now, it remains unclear what the terms of the exemption will be once the language is drafted. An carveout allowing banks to invest a very small amount of capital, governed by strict trading rules might meet muster with reformers, who generally worry that the loophole could dramatically undermine the entire Volcker rule.
We should know more tomorrow.