October 22, 2009
-- by Dave Johnson
Just look at this, Family Trusts Lobby to Avoid New Rules
Wealthy Americans who operate family investment funds have launched a lobbying campaign to escape new rules being weighed by Congress aimed at more tightly regulating private investment groups.1000 family accounts, half of which have at least $1 billion in them. They want to be exempt from rules so they hire friends of Sens Biden and Kennedy, who are then paid $60K a month -- to do what?
... World-wide, there are about 1,000 such family accounts with $100 million or more in assets each, according to a recent study by the Wharton School at the University of Pennsylvania; about half of those accounts have $1 billion or more in assets each. Families need about $100 million in assets to start such a fund, which costs about $3 million a year to manage, the Wharton study reported.
About 50 family investment funds have formed a coalition and hired lobbyists to make their case with lawmakers that they should be exempt from the new rules. The families say their funds are aimed at maintaining wealth, not investing aggressively like private-equity firms or hedge funds, and therefore pose no systemic risk to the economy.
. . . The main lobbying vehicle for the families is an association called the Private Investor Coalition. Under lobbying rules, it isn't required to disclose the names of those who are funding the effort, and their identities couldn't be learned.
... The families hired Thomas Quinn, a top Democratic fund-raiser and friend of the late Sen. Ted Kennedy, and Jake Seher, who spent a decade as a top aide to then-Sen. Joe Biden. The two are paid a total of $60,000 a month, according to disclosure filings.
Oh, that $60K per month is just one of many clients. THIS is the Democratic establishment that calls us the "fringe left."
Posted by Dave Johnson at October 22, 2009 10:28 AM
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