Why Pension Funds Are Hooked on Private Equity
When President Obama unveiled his budget last Wednesday, it rekindled a debate over taxation of the private equity industry. Many executives in the private equity business (as well as the venture capital and hedge fund businesses) pay the capital gains rate on their earnings rather than the higher rate paid on ordinary income. Even though these industries make most of their money from the appreciation of assets — the definition of “capital gains” — the President, and many others, believe it is unfair that employees of these funds are able to pay the capital gains rate. After all, these execs are getting paid to manage these funds, not for risking their own capital. Of course, the private equity industry isn’t going to take such a tax hike lying down. According to Politico, the Private Equity Growth Capital Council recently sent a white paper to the House Ways and Means Committeer extolling the benefits of private equity for America’s pension funds. According to the paper: “Since ...
White Promises ‘Unrelenting’ Enforcement at SEC
WASHINGTON — Mary Jo White vowed Tuesday to make “bold and unrelenting” enforcement of Wall Street a high priority if she is confirmed chairman of the Securities and Exchange Commission. White, a former federal prosecutor, says investors need to know the playing field is level and that wrongdoers will be “aggressively and successfully” pursued. “Strong enforcement is necessary for investor confidence and is essential to the integrity of our financial markets,” said White, 65, in prepared remarks to the Senate Banking Committee, which is considering her nomination. White is expected to face tough questions from senators about her decade of legal work representing some of the nation’s largest banks and corporations. But ultimately, she is expected to win confirmation from the panel and the full Senate. She would replace Elisse Walter, who has been interim SEC chairman since Mary Schapiro resigned in December, and become the first former prosecutor to lead the top regulator ...
Wall Street likely to shrug off Obama as investors wait for budget deal
NEW YORK - The U.S. stock market is unlikely to take much direction from Tuesday's State of the Union, although President Barack Obama was less combative in his tone than some on Wall Street expected.
Found more than 1 month ago on channel Reuters
Before the Bell: Jobless, ECB, retail sales in spotlight
Wall Street pointed lower on Thursday after some downbeat economic reports. Europe is parsing remarks from ECB President Draghi after the central bank left interest rates where they were. The euro is a bit higher against the dollar. U.S. retailers are reporting monthly sales.
David Weidner's Writing on the Wall: Tim Geithner: The exit interview*
How did former Treasury Secretary Timothy Geithner tell President Obama he was stepping down? David Weidner imagines the conversation.