Private equity underwriters (PEU's) had an outstanding week on Capital Hill. Consider their wins:
1. Carried interest taxation will not change. WSJ reported:
A bill that would have extended unemployment benefits and taxed the majority of carried interest as ordinary income couldn’t clear the Senate, as a 57-41 vote was insufficient to stop a Republican-led filibuster. Senate Democrats say they’ll let the bill die.
2. Financial reform gives a free pass to nonbank PEU's.
The bill doesn't change much for banks. It changes even less for shadow bankers. Congress catered to their PEU sponsors. Who else will toast their success? Maybe the White House?