Press Release

AAF President Douglas Holtz-Eakin Testifies on the Role of Private Equity Firms in Financial Markets

In testimony before the Senate Banking, Housing, and Urban Affairs Subcommittee on Economic Policy this afternoon, AAF President Douglas Holtz-Eakin discusses financial markets, in general, and, in particular, the role of private equity firms.

His key points:

  • Financial markets serve key economic functions such as intermediation between savers and investors, allocation of capital, diversification of risk, separation of ownership and management, pricing return and risk, and others;
  • Participants in financial markets have myriad business models – banks, insurance companies, pension funds, hedge funds, private equity, etc. – to undertake these functions; legal, regulatory, and tax policies should be as neutral as possible with respect to the choice of business models; and
  • The Stop Wall Street Looting Act violates this basic dictum, discriminating against public equity firms, damaging the outlook for the private equity industry and the economy as a whole.

Watch the Hearing

Read the Testimony