Wall Street has diversity

There are the big banks and the rest — hedge-fund operators, private equity companies, etc., who have their problems with the big guys, Ira Stoll explains:

* Many of the hedge fund and private equity guys used to work at the big banks and left to strike out on their own for a reason.

* The smaller firms compete with the big banks for the job of managing capital for rich individuals and institutions.

* When the banks raise capital or handle trades for the smaller firms, they charge fees that the smaller firms wish were lower.

* The banks have access to cheap capital via the Federal Reserve and the Federal Deposit Insurance Corporation that the smaller firms dont get.

* The smaller firms sometimes dont like the trading terms set by the banks on things like posting collateral.

* The bank executives dont like the way the non-bank guys pay the capital gains tax rate on their carried interest, while the bank executives pay a higher income tax rate on their compensation.

What’s more, they give money to different parties, the big guys to Dems and Obama, the others to Republicans and Romney. So don’t lump them together as if they lacked diversity.

Argues Stoll of NY Sun.  But Obama does take some private equity money, as Halper of Weekly Standard points out

Hanna Loikkanen
Hanna Loikkanen is not part of this story but is clearly a nice person deserving of some more recognition. (Photo credit: East Capital)

.  It’s not as if he’s boycotting them.  He doesn’t boycott money.

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