Tag Archives: private equity

Wall Street sign and a stoplight turned red - Photo by Roberto Júnior on Unsplash

Statement: SEC Exams Show Private Fund Managers Overcharge Investors

The problems the SEC identified include fund managers’ failure to make full and fair disclosure of conflicts of interest, charging improper fees, and failure to implement policies to prevent staff from trading on material non-public information. In other words, the SEC’s examinations have shown that private equity and hedge fund managers are consistently engaged in self-dealing and overcharging investors, like pension funds that provide for the retirement security of millions of Americans.

Fact Sheet: Private Equity Industry Poised to Profit from the Federal Reserve’s New Lending Programs 

Private equity funds could access government assistance for their portfolio companies while avoiding any responsibility to repay any debt or obligations to the public purse. Private equity firms could also tap government aid to finance leveraged buyout purchases of additional companies, using public money to load target companies with debt and drain their assets while avoiding any responsibility for paying that debt back.

Blog Post: Wall Street’s Secret Pet Profiteering

More and more as we go about our lives, the money we spend is siphoned off to enrich Wall Street firms. Private equity’s pet profiteering is just one way these investors have taken over so much of the economy and our daily lives.

Comment Letter: Comments on Federal Reserve Emergency Facilities

Together, these facilities could deploy up to $2.3 trillion in new credit to the economy during the pandemic crisis period. Without major changes these facilities will not be effective in getting assistance to those most impacted by the crisis, and disclosure and transparency regarding specific borrowers and loan terms is lacking. Our comment provides specific recommendations to address these issues.