This is a great article especially because of the up coming election. I find the IndyMac example very interesting. It really amazes me that the firm was able to buy the assets at such a discounted price and that the FDIC would provide such a large sum of money. That the tax structure works in such a way that the the leader of these firm pay only 15% in taxes, which significantly less than most, is also very interesting. The private firms are taking big risks with money coming from public pension funds which are government back and tax payer supported. So if they make a bad investment the government will subsidize the losses with tax dollars. Should these firms be allowed to take such large risks with government backed money? Does the fact that these private equity firms are the largest donors to campaigns have something to do with their freedom with public backed money?
No comments:
Post a Comment