In today’s New York Times, Andrew Sorkin describes the sweetheart taxes for hedge-fund and private-equity partners as follows:
General partners at private equity funds, who take a cut of the investment gains they earn for their investors in the form of “carried interest,” have been paying federal taxes worth only 15 percent of that cut.
This means the “gods of Greenwich” receive about a 24.6 percent tax break. That’s because the highest bracket on ordinary income—currently 35 percent—is expected to return to 39.6 percent. And the gods don’t pay taxes on their carried interests until they liquidate and pull out the cash. Continue Reading →
In our judicial system, judges recuse themselves when there are conflicts of interest. I’d like to see the same thing in Congress. The only problem—it’s not clear the Senate could field the necessary quorum to hold a vote. Continue Reading →
Is paranoia necessary to survive on Wall Street?
In one sense, Goldman Sachs is no different from any other investment bank on Wall Street. When it comes to protecting the brand, junior employees are expendable. Like goldfish, investment banks eat their young when self-interest make cannibalism seem rationale. Continue Reading →