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