We've speculated that all of the chatter about the Volcker Rule, and what it would mean for Wall Street has prompted some firms to take a close look at its alternative investments units. You might think that the proposed sale of hedge fund assets by Citigroup (C) would confirm the view that banks are ready to get out of proprietary investments and alternatives game ahead of the rule.

But way before the Volcker Rule hit the headlines, Citigroup (Citigroup news) said it wanted to offload billions worth of non-core assets. It's now following through, apparently. Media reports have held that Citi is in talks with SkyBridge Capital to sell off a fund-of-funds business. Apparently it also intends to sell about $1 billion in funds invested in hedge funds (hedge funds news), $2.5 billion in Citi-advised hedge funds, and $500 million in seed capital stakes in small hedge funds. You have to wonder if all these assets sales will blunt the need for a Volcker Rule-like regulation. 

For more:
- here's a Reuters article

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