Hedge funds fight $19 billion financial reform tax
By Lawrence Delevingne
Tue Jun 29, 2010
Industry lobbyists mount a full-court press to block an assessment on the largest hedge funds and banks. It may have worked.
Hedge fund lobbyists are fighting vigorously to kill a measure that could mean billions of dollars of taxes for the nation’s largest hedge fund firms. Their cries have already helped prompt an alternative proposal from Senator Chris Dodd (D-CT) and an extraordinary renegotiation of a financial reform package that is virtually complete.
Shortly before 3:00 a.m. Friday morning, Representative Barney Frank (D-MA) introduced a $19 billion tax on hedge funds managing $10 billion or more and other large financial institutions to fill an unexpected budget gap in financial reform legislation.
The blowback was swift and strong. The hedge fund industry began aggressively lobbying against the “Financial Crisis Special Assessment” and has powerful help among such financial institutions as State Street Corp., which would be affected. The Boston firm’s hometown senator, Scott Brown (R-MA), has said he may block the entire financial regulation package because of these concerns....
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