Congress to look into equity firms
Three U.S. congressional panels plan to examine private equity firms and hedge funds at hearings Wednesday, turning a spotlight on an industry that some lawmakers think should pay sharply higher taxes.
The vast wealth amassed in recent years by private equity and hedge fund managers is drawing lawmakers’ attention like never before, with the Senate Finance Committee set to look into raising taxes on managers’ “carried interest” pay.
The House Financial Services Committee will hold a hearing on systemic risks to the economy and the financial system posed by hedge funds, and the House subcommittee on domestic policy will hear testimony on whether small investors should be exposed to hedge fund risk, such as the $4.13-billion initial public offering of private equity firm Blackstone Group.
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