Senate eyes hedge fund lending

The Senate is investigating another tax perk enjoyed by the hedge fund industry.
AUG 14, 2007
By  Bloomberg
After scrutinizing “carried interest,” the Senate is now investigating another tax perk enjoyed by the hedge fund industry. The Senate Finance Committee is looking into hedge funds that lend money like banks but often don't pay U.S. taxes on the profits, reports The Wall Street Journal. They do this, said the Journal, by using offshore affiliates and transactions designed to take advantage of a gray area in the tax law that differentiates between lending and investing activities. The present tax rules regarding hedge fund lending may withhold billions of dollars in taxes from the Treasury, said the Journal. Last month, congressional Democrats introduced legislation that would oblige hedge fund and private-equity fund managers who receive a “carried interest” as compensation to pay ordinary income tax rates instead of lower capital gains rates.

Latest News

Carson, Lido strengthen RIA networks with bicoastal deals
Carson, Lido strengthen RIA networks with bicoastal deals

Carson is expanding one of its relationships in Florida while Lido Advisors adds an $870 million practice in Silicon Valley.

Goldman gets shareholder backing on $80M executive bonus packages
Goldman gets shareholder backing on $80M executive bonus packages

The approval of the pay proposal, which handsomely compensates its CEO and president, bolsters claims that big payouts are a must in the war to retain leadership.

Integrated Partners, Kestra welcome multigenerational advisor teams
Integrated Partners, Kestra welcome multigenerational advisor teams

Integrated Partners is adding a husband-wife tandem to its network in Missouri as Kestra onboards a father-son advisor duo from UBS.

Trump not planning to fire Powell, market tension eases
Trump not planning to fire Powell, market tension eases

Futures indicate stocks will build on Tuesday's rally.

From stocks and economy to their own finances, consumers are getting gloomier
From stocks and economy to their own finances, consumers are getting gloomier

Cost of living still tops concerns about negative impacts on personal finances

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.