Biden to target ‘nonbanks’ such as hedge funds (despite staying at billionaire finance chief’s home)
“Just more hypocrisy!” Joe Biden is being criticized for saying he will hit non-banks like hedge funds, insurers and cryptocurrencies with federal oversight…when he spends Thanksgiving at billionaire private equity tycoon’s Nantucket mansion
- The Biden administration plans to expand regulations for “non-banks.”
- They include hedge funds and other companies that manage money but are not banks
- Details emerged a day later after the Bidens arrived for the holiday on Nantucket
- They are staying at David Rubenstein’s £20 million island home
- He made his fortune in private equity, hedge funds and financial management
- The association soon brought accusations of hypocrisy
President Joe Biden was accused of hypocrisy on Wednesday, when it emerged his administration was planning to target big financial firms not covered by banking regulations — even as he splurged on the $20 million Nantucket mansion of a private equity billionaire.
The Bidens spend Thanksgiving at David Rubenstein’s waterfront home, which Forbes estimates is worth about $3.2 billion.
But on the day before Thanksgiving, it emerged that regulators at the Treasury have hedge funds, asset managers, insurance companies, mortgage companies and cryptocurrency exchanges all within their grasp.
They intend to reverse the Trump-era restrictions that limit their regulation.
EJ Antoni, an economist with the Heritage Foundation, said it was another example of Democrats making promises to please the grassroots while living the good life.
“Biden dining with these wealthy plutocrats is just another example of that kind of hypocrisy,” he said.
“People on the left like to say one thing and then do another.”
The Bidens are staying at a luxury waterfront complex owned by billionaire David Rubenstein on Nantucket for their Thanksgiving holiday
President Joe Biden, First Lady Jill Biden, Ashley Biden, Melissa Cohen, Baby Beau Biden and Hunter Biden disembark from Air Force One Tuesday evening for their Nantucket Thanksgiving break
The Bidens previously stayed at Rubenstein’s Nantucket home. The two men were honored at the National Committee on American Foreign Policy Gala in New York in November 2017
Biden, his wife Jill and other family members arrived on Air Force One on the posh island of Massachusetts on Tuesday. They stay there until Sunday.
The island has been a Thanksgiving tradition for the Bidens since the 1970s.
And they have enjoyed Rubenstein’s hospitality before. They stayed on his property last year and in 2014 when Biden was vice president.
Rubenstein made his fortune after co-founding the Carlyle Group in 1987. Today, it is a multinational private equity, alternative asset management and financial services company that manages hundreds of billions of dollars in assets.
But on Wednesday it emerged that the Treasury’s Financial Stability Oversight Council, responsible for the stability of the financial system, plans to step up regulation of so-called “non-banks.”
The compound has a swimming pool and is located on the waterfront
It emerged on Wednesday that the Treasury’s Financial Stability Oversight Council plans to step up regulation of so-called ‘non-banks’
The Wall Street Journal reported that the aim was to make it easier to label such institutions as “systemically important financial institutions” (SIFI) – a designation that carries additional regulation to prevent them from ever collapsing.
Officials have been on alert for problems since the start of the pandemic that saw investors rush to cash in on their investments.
Formal plans could be ready by early 2023, sources said.
Rubenstein made his fortune after co-founding the Carlyle Group in 1987
The Trump administration made it more difficult to impose the SIFI designation in 2019, forcing the council to conduct an in-depth review.
Republicans will certainly oppose any return to the previous system, arguing that the council is unaccountable and far from transparent.
Antoni said the Biden administration planned to impose things like environmental, social and governance standards on more sectors.
He said the move is best understood in political terms rather than regulatory terms.
‘So this. ultimately, it’s an effort to broaden the reach of different regulators because that way they can expand the reach of things like their ESG mandates,” he said.
‘So the same agencies that now only regulate large national banks, for example.
‘They would like to be able to impose the same rules on non-bank institutions, such as hedge funds.’