Word: schwarzman
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
...with the Countrywide deal, it will soon be No. 1 in mortgages. If Wall Street once looked at this bank as some sort of Southern arriviste, that notion was erased for good in November 2006 when BofA's $243.7 billion market capitalization surpassed that of Citigroup. Blackstone CEO Stephen Schwarzman, the insider's insider on the Street, praises BofA as "a phenomenally successful earnings machine...
...there something Henry Kravis wants but can't afford to buy? Seems unlikely: according to Forbes, he's worth $2.6 billion. So is he addled by greed or what? Kravis, Stephen Schwarzman and other princes of private equity (the financial deal of the moment) have been visiting Congress and wielding their checkbooks in an effort to save a tax-code provision that allows them to pay an income tax of 15% rather than the normal top rate of 35%. Have they lost their minds...
...certainly open to persuasion that these private-equity deals are on balance a good thing, that they clear the cobwebs from dusty corners of the economy. But that doesn't mean they need or deserve a huge tax break. Tax breaks aren't free. Lower taxes on Stephen Schwarzman mean either higher taxes on somebody else or a bigger national debt...
...Blackstone-induced "class envy," as TV pundit Larry Kudlow has called it, is not the only reason Congress has suddenly developed an interest in the subject. Nobody proposes touching Schwarzman's big founder's stake, which slipped below $8 billion within days as Blackstone's stock price dropped. At issue instead is the mere $398 million he made as CEO last year, much of it in carried interest on Blackstone's investments. And the manner in which carried interest is taxed is enough to make even a megamillionaire corporate CEO envious...
...rate at 33%.) But since 1992, as the chart on the previous page shows, income and capital gains rates have followed very different paths. One inadvertent result has been a pronounced tax bias in favor of private-equity partnerships and against traditional corporations. It's a bias that Stephen Schwarzman has taken great advantage of over the past 15 years. Now he may just have helped end it. THE BIG TAX GAP The growing disparity between capital gains and income tax rates has been a boon to private equity [This article contains a chart. Please see hardcopy of magazine...