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Hedge Funds Managers Made $1B in 2007

Well, if you're a hedge fund manager and you get dragged before a congressional panel, you should probably expect to get your compensation made public.

The heads of five of the biggest U.S. hedge funds are testifying right now before Rep. Henry Waxman's (D-Calif.) oversight committee on whether the funds should be regulated. (They currently are not.)

Rep. Elijah Cummings (D-Md.) wanted to make a point about tax rates, and it's the following: Some really rich folks, if they count their earnings as long-term capital gains, will get those earnings taxed at a rate of 15 percent which, Cummings pointed out, is lower than the rate a school teacher would pay on their ordinary income.

In the process, Cummings said that the hedge fund managers had supplied compensation information to the committee and, after saying that he didn't want to violate anyone's privacy, revealed that all five of the hedge fund managers each made at least $1 billion in 2007.

Cummings went on to not violate the privacy of witness John Alfred Paulson, president Paulson & Co., by revealing that he made more than $3 billion in 2007.

"That's a staggering amount of money," Cummings said, before adding, "I'm not knocking you for it."

-- Frank Ahrens

The Ticker is Twittering!

By Frank Ahrens  |  November 13, 2008; 1:54 PM ET
Categories:  The Ticker  
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Comments

3 billion dollars at 15 percent=$450,000,000.00 paid in taxes.

That seems like alot until you consider the fact that, if he were taxed like any other wage earner, it would have been $1,050,000,000.00 before deductions.

Of course the Wall Sreet elite say that taxing Mr. Paulson (any relation to Hank?) at the rate for normal income would discourage investment and hurt the economy.

I'm almost certain that if he had only been able to net only TWO BILLION DOLLARS instead of two and a half billion, he would have just stayed home and collected unemployment.

Disgusting!

Posted by: mhhaggard | November 13, 2008 2:18 PM | Report abuse

thats right, edwards, gore and all of corzines buddies are cashing in on this crisis...
even obama's advisor, buffet made a killing acquiring a major firm at buffet prices...
these people created the crisis and are getting paid ten times over because the American people let them...
no republicans here to blame...

Posted by: DwightHCollins | November 13, 2008 2:36 PM | Report abuse

You can see hedge funds returns here: http://www.greenfaucet.com/the-market/good-and-bad-returns-in-the-hedge-fund-world/94390

If you're interested in just how well (and in many cases how badly) some funds did.

Posted by: macebruce | November 13, 2008 5:23 PM | Report abuse

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