Sarah L. continues her terrific posts on the WMATA’s sale-leasebacks. It appears the sale-leaseback contracts may have increased the marginal cost of replacing equipment, but did not forbid replacing old equipment. Still, Sarah’s broader point is important.
This section permits WMATA to terminate the lease with respect to any equipment that has become obsolete, subject to [...]
Not surprising. Although the idea that pay is increasing to offset the threat of (not yet enacted) bonus taxes sounds fishy — competitive pressure is a real concern; bonus taxes less so.
Between late 2008 and May, expansionist banks such as Barclays Capital, Credit Suisse and Deutsche Bank had plundered hundreds of senior bankers from those [...]
Reuters has a useful chart.
Fighting to maintain its ridiculously low tax rate on “carried interest,” Blackstone comes across as nothing more than a bunch of rapacious capitalists.
Remind me to use the word rapacious more often.
via BlackRock vs. Blackstone | Green Business | Reuters .
Finally, the IMF study mentions two other tax factors that may have contributed to the economic bubble. First, the compensation of private equity and hedge fund managers is “carried interest” that is taxed as long-term capital gains rather than wages–15% instead of 35%. This may have encouraged too many people to start companies that were [...]
Glass half-empty? Find a smaller glass.
VC isn’t broken. In fact, I would argue that there’s never been a more exciting time to be involved in venture capital. I’m highly optimistic.
via Apparently 52.9% of Venture Capitalists are Deluded | Mendelson’s Musings.
Bill Henderson has the latest bimodal salary distribution:
In the short term, current students and recent graduates are in a world of hurt. Specifically, law school debt loads continue to climb. Thus, law schools are (rightfully) going to be under increased pressure to deliver value to our students. I don’t think most law professors and law [...]
Darian Ibrahim has posted a new paper describing the market and function for venture debt. One key insight is that venture lenders rely on the reputation of the VC investors in making the loan — they are relying on the VC coming back to fund the next stage as the source of repayment of the [...]
Interesting abstract – I’ll have to read the paper to figure out why the hostage strategy can’t be replicated by contract outside the nonprofit form.
In a well-functioning stock market, issuing firms publicly disclose all relevant information to investors and prices approximate the true value of those firms. This disclosure generates liquidity as investors large and [...]
Not surprising. Although the idea that pay is increasing to offset the threat of (not yet enacted) bonus taxes sounds fishy — competitive pressure is a real concern; bonus taxes less so.
Between late 2008 and May, expansionist banks such as Barclays Capital, Credit Suisse and Deutsche Bank had plundered hundreds of senior bankers from those [...]
Ouch.
In a recent meeting with law school deans, I asked, “If you decided the purpose of law school was to maximize the comfort and income of the faculty, what would you do differently?” The answer: “Nothing.” When my wife’s grandfather was a law school dean, it was understood that the law school was there to [...]
Leiter reads Hurd’s email as sarcastic. Well, yes and no. I’d call it snarky. In the context of Chancellor Herman’s email, Hurd’s response is over the top, but hardly an instruction not to ask about jobs.
One can be sure Chancellor Herman understands that. Attacking university officials over this scandal is like attacking the victim of a [...]
Bill Henderson has the latest bimodal salary distribution:
In the short term, current students and recent graduates are in a world of hurt. Specifically, law school debt loads continue to climb. Thus, law schools are (rightfully) going to be under increased pressure to deliver value to our students. I don’t think most law professors and law [...]
This isn’t great. But in Heidi’s defense, at least she was trying to do some good for U of I grads at the bottom of the class (ie those that need help finding work), and not, say, seeking a personal benefit. Obviously, it would have been better if she’d found a way to say no [...]
Via Leiter.
Any private or state school with money for hiring is going to be looking hard at the U of C system for talent next year if this goes through.
UPDATE: A philosopher in the UC system writes:
The UC pay cut is actually more like 10%. That is because a separate decision earlier this year meant that [...]
I teach Deals, Venture Capital & Private Equity, Tax Policy, and a seminar on Higher Education. I have also taught Federal Income Tax, Corporate Tax, and Partnership Tax.
My research focuses on the structuring of deals, with particular emphasis on the effects of tax planning and regulatory gamesmanship.
This summer, I am working on an article, "Regulatory Craftsmanship," which provides a theoretical framework for understanding how lawyers create value for their clients by exploiting the gap between the economics of a deal and its regulatory treatment.
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