S.2155 - Stop Wall Street Looting Act116th Congress (2019-2020)
|Sponsor:||Sen. Warren, Elizabeth [D-MA] (Introduced 07/17/2019)|
|Committees:||Senate - Finance|
|Latest Action:||Senate - 07/17/2019 Read twice and referred to the Committee on Finance. (All Actions)|
This bill has the status Introduced
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Summary: S.2155 — 116th Congress (2019-2020)All Information (Except Text)
Introduced in Senate (07/17/2019)
Stop Wall Street Looting Act
This bill generally revises provisions related to the regulation of private equity funds. Among other things, the bill
- increases financial and legal liability for these funds in the event of certain violations of law,
- gives employee compensation higher priority in bankruptcies, and
- generally prohibits the payment of dividends for two years from an acquired asset firm to a private equity fund.
The bill modifies the tax treatment of carried interest—compensation that is typically received by a partner of a private equity fund and is based on a share of the fund's profits. (Under current law, carried interest is taxed as investment income rather than at ordinary income tax rates.) Among other things, the bill treats as ordinary income the net capital gain with respect to a private equity fund.