Private Equity Council issues statement on Secretary Geithner’s proposals on systemic risk regulation
WASHINGTON, DC, March 26, 2009 — The Private Equity Council today released the following statement regarding Treasury Secretary Geithner’s proposal, outlined in testimony before the House Financial Services Committee, for regulation of systemic risk to the nation’s financial system. The statement should be attributed to Private Equity Council President Douglas Lowenstein.
“We commend the Obama Administration for putting forward a plan to comprehensively address systemic risk in the financial system and reduce the likelihood of a future financial crisis.
“As part of the effort to reduce systemic risk, the proposal unveiled today by Treasury Secretary Geithner for the first time would impose potentially significant regulation on the private equity industry.
“We believe that private equity investments do not create systemic risk. Private equity firms invest in companies, not exotic securities and their investors are long-term investors, eliminating the ‘run on the bank’ type of risk that helped create the current financial crisis.
“We look forward to working with Congress and the Administration to ensure that any legislation that is enacted will give the government the tools it needs to protect the American economy and taxpayers without imposing undue burdens on private equity firms seeking to make investments that create jobs and make companies more competitive.”
About the Private Equity Council
The Private Equity Council, based in Washington, DC, is an advocacy, communications and research organization and resource center established to develop, analyze and distribute information about the private equity industry and its contributions to the national and global economy. PEC members are: Apax Partners; Apollo Global Management LLC; Bain Capital Partners; The Blackstone Group; The Carlyle Group; Hellman and Friedman LLC; Kohlberg Kravis Roberts & Co.; Madison Dearborn Partners; Permira; Providence Equity Partners; Silver Lake, THL Partners; and TPG Capital (formerly Texas Pacific Group).
