Unions Drive Push to Regulate Private Equity Funds
A private venture company purchase of Chrysler automobile has set off a storm of anger from the Big Labor Bosses and their benefactors in Congress, who are now threatening to regulate private equity funds in the hope it will lead to more unionization, according to Investment News.
Working with the Service Employees International Union (SEIU) is House Financial Services Committee Chairman Barney Frank, D-Mass., who “made clear at a hearing held by his committee May 16 that he is looking at unspecified legislation to regulate private-equity funds more stringently.”
Frank said his committee is focusing on whether there is such a pattern of reorganization and restructuring of companies by equity funds in order to make the companies profitable. He would look at possible changes to the law that “could have [an] effect on policies involving unionization [and] taxation.”
SEIU is not the only union player pushing for taxation and regulation of this investment vehicle. “The AFL-CIO in Washington recently asked the SEC to require Blackstone, a private-equity and hedge fund group, to register as a mutual fund in light of the company’s offering its shares as a publicly traded limited partnership.”
If the workers won’t join unions voluntarily, union officials just need to ask Congress for help.