In my column today on Chuck Schumer’s financial, professional, and legislative relations with the hedge fund lobby, I made a regretful omission. While I described two positive, big-government benefits hedge funds get from the financial bill, I left out other important reasons the hedge funds could like the bill: it does not include a proposed tax hike on fund-manager pay; it does not include more stringent regulations, which have been proposed, and which could seriously cramp hedge funds’ business.
I specialize in covering regulatory robbery, and sometimes I skip over the type of lobbying efforts I think the rest of the media cover amply — when business lobbies to be left alone. I didn’t mean to imply hedge funds’ agenda was entirely a Big Government agenda.
Also, blogger Ira Stoll has a blog post commenting on my column today that’s worth reading. First, he notes some of the hedgies he knows are “concerned” about the bill, suggesting the legislation might not be as favorable to hedge funds as I argue. But Stoll also points out that the lobbying firm where Schumer’s banking staffer went has some other interesting business:
Norman Brownstein pledged to raise $1 million for the 2008 Democratic National Convention in Denver at which Mr. Obama was nominated, over and above Mr. Brownstein’s law firm partner Steven Farber’s efforts as a co-chairman of the convention host committee.