Systemic Vacuous Rancid Banking Trail (follow the stink)

Shining some light on how Wall Street is working to “cure” itself.
Watch Mr. Kravis work the system.

1. Ask for government to back purchase.
“private investment firms Kohlberg Kravis Roberts and TPG, withdrew at the last minute (on purchasing collapsing AIG) because the government refused to provide a financial guarantee for the purchase.”

From Wall Street Collapse article New York Times

2. Lobby congress to give you special tax rate (um.. where the government guarantee money comes from)
WASHINGTON,
July 10 — Henry R. Kravis, the billionaire founder of the corporate
buyout movement, was working the hallways of Capitol Hill, hoping to
kill legislation that would raise his taxes and those of other
investment fund executives.

Democrats are hoping that billions of additional dollars in tax revenue
from the private equity industry, as well as some players in the hedge
fund arena, could help to finance education tax credits, broader health
programs for lower-income families, and new limits on the growing reach
of the alternative minimum tax.

3. Rely on Bush conservative republican money inbreeding


The industry’s leaders include a variety of seasoned political hands.
The senior chairman and co-founder of the Blackstone Group, for
instance, is Peter G. Peterson, a former White House official and
commerce secretary. Mr. Kravis’s ties to the Bush family go back
decades, to the time when his father was friends with Senator Prescott
Bush, the president’s grandfather. Another major player in the debate,
the Carlyle Group, is based in Washington and led by a group of
well-connected former top government officials.

“It will be a broader fight about the fairness of capital gains having
a lower tax rate. It will be about rewarding risk and recognizing that
when you reward risk you create economic growth.”

4. Form a phony “Council”

The newly founded Private Equity Council, which represents the largest
industry players, has retained a battery of lobbyists from Akin Gump
Strauss Hauer Feld; Capitol Tax Partners; Brownstein Hyatt Farber
Schreck; and Johnson, Madigan, Peck, Boland & Stewart. Kohlberg has
several well-positioned lobbyists, including Kenneth B. Mehlman, a
former chairman of the Republican National Committee, who is a partner at Akin Gump.

Someone watching this ratswirl commented:

“The top 25 individuals in the industry got paid over $10 billion,
taxed at a rate of 15 percent. Those 25 people got paid three times the
amount that was paid to all 80,000 people who teach in the New York
City schools, and they paid roughly one-half to one-third of taxes on a
percentage basis.”

Now, lets keep  Kravis’ and pals lower tax bracket and guarantee their purchase of failed unregulated AIG so we can continue the  “risk” myth.

“It will be about rewarding risk and recognizing that
when you reward risk you create economic growth.”

And we will live happily ever after

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