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
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