because of his position on the Senate Banking Committee
http://www.bloomberg.com/apps/news?pid=20601087&sid=aZC9eSeHtdpI&refer=home>>
Senate Banking Committee Chairman Christopher Dodd said he has reservations about the potential impact of legislation that would change the tax treatment for publicly traded private-equity firms and hedge funds.
While he's begun to hear analysis and arguments, Dodd said he's ``not prepared to support any legislation'' before reviewing the effect new laws will have on markets and investors.
``I am concerned about the potential adverse effects that these proposals would have on capital formation, on job creation and on institutional investors like pension funds and college endowments,'' Dodd, a Connecticut Democrat who is running for president, said today before a banking panel hearing.
Legislation has been introduced in the House and the Senate that would increase taxes on private-equity firms, hedge funds and their managers. The proposals have been criticized by Treasury Secretary Henry Paulson and other Bush administration officials who say it may have unintended consequences.
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http://online.wsj.com/public/article_print/SB118463122029268294.html>>
Mr. Dodd has received a large share of his donations from both private-equity firms and hedge funds. Mr. Dodd has enjoyed two advantages in fund raising in the sector: Many of the funds are based in his home state of Connecticut and he is the chairman of the Senate Banking Committee, the panel that has the power to regulate the industry.
The leading source of campaign donations to Mr. Dodd's campaign is SAC Capital Advisors LLC, a Greenwich-based hedge fund run by Steven A. Cohen. Employees of SAC Capital have donated $268,000 to his campaign war chest. Mr. Dodd has also received large contributions from employees of Taconic Capital Advisors LP and AQR Capital Management.
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http://articles.moneycentral.msn.com/Investing/CompanyFocus/PrivateEquityPowersTheCandidates.aspx>>
Next up, private equity and hedge funds are shoveling a lot of money at Dodd, a Democratic senator from Connecticut. He's received $726,950 so far. It's easy to see why: He chairs the Senate Banking Committee, which has a lot of say about what happens on Wall Street.
The hedge fund SAC Capital Advisors is his biggest single contributor, at $349,700. SAC Capital is a Stamford, Conn., fund whose chief executive, Steven Cohen, ranked among the five highest-paid hedge-fund CEOs last year at $900 million, according to Alpha magazine. Cohen has personally given Dodd $4,600.
But like many the hedge funds, SAC Capital takes care to diversify its portfolio of presidential candidates. The fund's employees have also given to Clinton, New Mexico Gov. Bill Richardson, Edwards and Rudolph Giuliani. Financial-services giant Citigroup (C, news, msgs) and brokerage firm Bear Stearns (BSC, news, msgs), which run hedge funds, also place among the top five Dodd donors.
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