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INSIDE THE STORY: The Battle Over The Side-Letter Scam
Lobbyists and their congressional allies are trying to protect secret deals that can enrich Wall Street insiders at workers’ expense.
This mini-episode is part of our Inside The Story series, where we highlight some of The Lever’s original reporting and speak with the journalists who wrote the story. Frank Cappello speaks with Matthew Cunningham-Cook who details their new story published by The Lever:
For years, the retirement savings of teachers, firefighters, and other government workers have been funneled by public officials to secretive Wall Street firms that charge high fees in exchange for the false promise of outsized returns. But as the stock market plummets and asset values drop, there are new fears that pensioners will be unable to access their cash, while insiders will be allowed to pull their money out before things get worse.
Now, Wall Street firms and their political allies — including a U.S. Senator with substantial private equity holdings — are trying to stop federal regulators from intervening to protect retirees by banning firms from giving some investors preferential treatment. And there are no rules requiring lawmakers with investments in private equity to disclose whether they are being given special investment preferences while they lobby to protect those asset managers.
To read the full story, click here.