Key Takeaways
- • Washington Examiner columnist Timothy Carney alleges Sen. Chuck Schumer (D-N.Y.) is too cozy with hedge funds, citing a former banking committee staffer, Carmencita Whonder, who now lobbies for fund clients.
- • Whonder left Schumer's staff in 2007 to join lobbying firm Brownstein, Hyatt, Farber, Schreck, where she registered three private equity firms as clients within days of her hire.
- • By the time Obama took office, Whonder's clients included the Private Equity Council and seven private equity or hedge fund firms, according to Carney.
- • In March 2009, as Congress began examining financial regulation reform, Whonder joined the Managed Funds Association, the hedge fund industry's main lobbying group.
- • Whonder raised $18,200 for Schumer, according to Federal Election Commission documents cited by Carney.
Summary
Washington Examiner columnist Timothy Carney argues that Democratic Sen. Chuck Schumer is too closely aligned with hedge funds, pointing to the career path of Carmencita Whonder, a former staffer on Schumer's banking committee. Schumer chairs the Senate Banking Committee, according to the column as reported by Newsmax. Whonder left that role in 2007 to join the lobbying firm Brownstein, Hyatt, Farber, Schreck, where she lobbied on behalf of hedge funds.
Carney writes that within days of Whonder's hire, she registered three private equity firms as clients. By the time Barack Obama took office, her client list included the Private Equity Council and seven private equity or hedge fund firms. In March 2009, when Congress began considering financial regulation reform, Whonder joined the Managed Funds Association, the principal lobbying group for hedge funds.
Carney also cites Federal Election Commission documents showing Whonder raised $18,200 for Schumer. He notes that other hedge fund lobbyists serve as official bundlers for the Democratic Senatorial Campaign Committee, which Schumer previously headed. Carney argues that hedge funds benefit from this access through legislation that includes stricter regulation, and he says the Managed Funds Association supports requiring hedge funds to register with the Securities and Exchange Commission, a position he attributes to the group's preference for larger funds over smaller ones. Carney concludes: "For now, all we can do is follow the money — and it all leads back to Schumer."
Separately, Newsmax reports, citing Bloomberg, that the financial industry is hosting fundraisers for legislators at a rate of almost once per business day in May 2010. At least 20 senators and representatives are involved, according to Democratic and Republican party committee schedules sent to prospective donors. The allegations are Carney's opinion and have not been addressed in the article by Schumer or the Managed Funds Association.
Carney writes that within days of Whonder's hire, she registered three private equity firms as clients. By the time Barack Obama took office, her client list included the Private Equity Council and seven private equity or hedge fund firms. In March 2009, when Congress began considering financial regulation reform, Whonder joined the Managed Funds Association, the principal lobbying group for hedge funds.
Carney also cites Federal Election Commission documents showing Whonder raised $18,200 for Schumer. He notes that other hedge fund lobbyists serve as official bundlers for the Democratic Senatorial Campaign Committee, which Schumer previously headed. Carney argues that hedge funds benefit from this access through legislation that includes stricter regulation, and he says the Managed Funds Association supports requiring hedge funds to register with the Securities and Exchange Commission, a position he attributes to the group's preference for larger funds over smaller ones. Carney concludes: "For now, all we can do is follow the money — and it all leads back to Schumer."
Separately, Newsmax reports, citing Bloomberg, that the financial industry is hosting fundraisers for legislators at a rate of almost once per business day in May 2010. At least 20 senators and representatives are involved, according to Democratic and Republican party committee schedules sent to prospective donors. The allegations are Carney's opinion and have not been addressed in the article by Schumer or the Managed Funds Association.
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