Monday, June 28, 2010

Levitt's Take on Financial Reform

Carlyle Group Senior Advisor Arthur Levitt spoke out on financial reform. His comments included:

On reports that this is the biggest financial reform since the Great Depression ...

“I think that’s ridiculous. Whatever changes were made were made at the margins.”

On who will pay for the reforms ...

“The business community in America is very good at adjusting to regulatory changes. I think that investors and consumers and businesses will absorb some [costs], and the firms that aren’t skillful at adapting to change will absorb more.”

Reform conclusions: it's not major, with most costs passed onto consumers. Arthur should thank Congress for watching The Carlyle Group's back. Private equity underwriters (PEU's) got a free pass. What about Europe?