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Biden to target ‘nonbanks’ such as hedge funds (despite staying at billionaire finance chief’s home)

The Bidens are staying at a luxurious waterfront compound owned by billionaire David Rubenstein on Nantucket for their Thanksgiving break

‘Just more hypocrisy!’ Joe Biden is slammed for saying he’ll hit nonbanks such as hedge funds, insurers and cryptocurrencies with federal oversight… when he’s spending Thanksgiving at billionaire private equity tycoon’s Nantucket mansion

  • The Biden administration is planning to extend regulations on ‘nonbanks’
  • They include hedge funds and other firms that manage money but are not banks
  • Details emerged a day after after the Bidens arrived for the holiday on Nantucket
  • They are staying at the £20 million island home of David Rubenstein
  • He made his fortune in private equity, hedge funds and financial management
  • The association brought swift accusations of hypocrisy 

President Joe Biden was accused of hypocrisy on Wednesday, when it emerged his administration was planning a headline grabbing clampdown on big financial firms that are not covered by banking regulations – even as he lived it up at the $20 million Nantucket home of a private equity billionaire.

The Bidens are spending Thanksgiving at the waterfront home of David Rubenstein, who is worth about $3.2 billion, according to a Forbes estimate.

Yet on the day before Thanksgiving it emerged that regulators at the Treasury have hedge funds, asset managers, insurance companies, mortgage companies and cryptocurrency exchanges all within their sights.

They plan to roll back Trump-era restrictions limiting their regulation.

E.J. Antoni, an economist at the Heritage Foundation, said it was another example of Democrats making promises to please the base while they lived the good life.

‘Biden dining with these rich plutocrats is just another example of that kind of hypocrisy,’ he said. 

‘People on the left love to say one thing but then do another.’ 

The Bidens are staying at a luxurious waterfront compound owned by billionaire David Rubenstein on Nantucket for their Thanksgiving break

The Bidens are staying at a luxurious waterfront compound owned by billionaire David Rubenstein on Nantucket for their Thanksgiving break

President Joe Biden, First Lady Jill Biden, Ashley Biden, Melissa Cohen, baby Beau Biden and Hunter Biden step off Air Force One for their Nantucket Thanksgiving break Tuesday night

President Joe Biden, First Lady Jill Biden, Ashley Biden, Melissa Cohen, baby Beau Biden and Hunter Biden step off Air Force One for their Nantucket Thanksgiving break Tuesday night 

The Bidens have stayed at the Rubenstein Nantucket home before. The two men were honored at the National Committee on American Foreign Policy Gala in New York in November 2017

The Bidens have stayed at the Rubenstein Nantucket home before. The two men were honored at the National Committee on American Foreign Policy Gala in New York in November 2017 

Biden, his wife Jill, and other family members arrived on the upscale Massachusetts island on Air Force One on Tuesday. They are due to remain there until Sunday. 

The island has been a Thanksgiving tradition for the Bidens since the 1970s.

And they have enjoyed Rubenstein’s hospitality before. They stayed at his compound last year and in 2014, when Biden was vice president. 

Rubenstein made his fortune after co-founding the Carlyle Group in 1987. Today it is a multinational private equity, alternative asset management and financial services corporation controlling several hundred billion dollars in assets.

Yet on Wednesday it emerged that the Treasury’s Financial Stability Oversight Council, responsible for the stability of the financial system, is planning to step up regulation of what are known as ‘nonbanks’.

The compound includes a swimming pool and sits at the water's edge

The compound includes a swimming pool and sits at the water’s edge

On Wednesday it emerged that the Treasury's Financial Stability Oversight Council is planning to step up regulation of what are known as 'nonbanks'

On Wednesday it emerged that the Treasury’s Financial Stability Oversight Council is planning to step up regulation of what are known as ‘nonbanks’

The Wall Street Journal reported the aim was to make it easier to label such institutions as ‘systemically important financial institutions’ (S.I.F.I.) – a designation that brings extra levels of regulation to prevent them ever collapsing.

Officials have been on alert for problems since the start of the pandemic sent investors scurrying to cash in their investments.

Formal plans could be ready in early 2023, sources said. 

Rubenstein made his fortune after co-founding the Carlyle Group in 1987

Rubenstein made his fortune after co-founding the Carlyle Group in 1987

The Trump administration in 2019 made it harder to impose the S.I.F.I. designation, requiring the council to conduct an in-depth review.

Republicans are certain to oppose any return to the previous system, arguing that the council is unaccountable and far from transparent. 

Antoni said the Biden administration was intent on imposing things like environmental, social, and governance standards to more sectors.

He said the move was best understood in political terms rather than regulatory terms. 

‘So this. at the end of the day, is an attempt to expand the reach of different regulatory agencies because that way they can expand the reach of things like their ESG mandates,’ he said.

‘So the same agencies that right now for example, might only regulate large national banks. 

‘They would like them to be able to impose those same regulations on the non-banking institutions, things like hedge funds, for example.’

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