Funds Hub

Money managers under the microscope

An unpleasant prospect

March 24, 2009

rtxd578There’s no shortage of ill will towards bankers at the moment.

But some executives in the private equity and hedge funds industries feel they are getting beaten with the same stick by politicians and the public, despite feeling relatively blameless in this crisis.

BC Partners managing partner Andrew Newington, speaking at the Reuters Hedge Fund & Private Equity Summit in London today, explained.

“There is clearly no political goodwill towards financial services in general and everyone within financial services is being lumped into the same bucket,” he said.

“So whether you’re an investment bank, whether you’re Fred Goodwin, whether you’re a private equity firm or hedge fund, it doesn’t matter, you appear on a placard at Canary Wharf with a noose around your neck, which isn’t a very pleasant prospect.”

Comments

This is one of the problem with the “lynch mob” mentality- the mob tends to not be very selective about who they go after, and paint the “enemy with a particularly broad brush. Rage leads to irrational behavior that clouds the judgement of normally reasonable individuals. The politians need to stop fanning the flames- many seem are more interested with their own political gain than taking positive action to address the crisis.

 

Is there anyone out there that actually knows how much tax the government has creamed off the financial sector in recent years?
If Banks want to defend themselves they could start by comparing their handouts from government with how much tax they have paid and then demand an explanation of just how this government has spent this money.

Bank & financial sector bashing is not going to go away until Banks stand up for themselves.

Posted by nick | Report as abusive
 

You would be hard pressed to convince me that the people running the banking sector are honest and smart enough to justify their compensation. Most of us regular people have more sense than the whole lot of them put together and we are not paid nearly the millions they get for selling out their companies. The very fact they they are not summarily fired, says it all about the state of the management in place in the industry.

Posted by Chip | Report as abusive
 

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