Labor Union Said to Call for Stricter Rules for Private Equity

The Service Employees International Union is apparently none too pleased with reported efforts by private equity firms to persuade the Federal reserve and other agencies to loosen ownership rules of banks.þþAccording to The New York Post, the 2 million-member union is calling on federal agencies to strengthen rather than loosen their bank-ownership rules to protect against what they believe could be abuses by the buyout shops. þþAmong the rules the union is calling for is a regulations that would force private equity firms which invest in banks to hold their stake for at least five years, The Post said.þþMeanwhile, private equity firms including J.C. Flowers & Company, the Carlyle Group, Warburg Pincus and Kohlberg Kravis Roberts have been meeting with the Federal Reserve and others to lobby for looser oversight and investment rules for banks, The Post said.þþ