Carlyle Reaches Settlement with New York State

Andrew Cuomo is exuberant. Is he premature? Probably. Carlyle has more and better criminals, er, lawyers than Cuomo. They’ll be working on loopholes while he’s trying to figure out his next path to the Governor’s mansion.
clipped from www.nytimes.com

The Carlyle Group has agreed to pay $20 million and make broad changes in its practices under a settlement reached with the state attorney general, Andrew M. Cuomo, as part of Mr. Cuomo’s sweeping investigation of corruption of the state pension fund.

Under the deal, Carlyle executives and the firm will not face any further action, including criminal prosecution, by Mr. Cuomo’s office.

Mr. Cuomo hopes to use the settlement with Carlyle, one of the largest and most politically connected private equity firms, as a model for broader reform in how hedge funds and private equity firms intersect with public pension funds.

Under its terms, Carlyle will be prohibited from using any kind of intermediary to provide even an introduction to officials at public pension funds.
Carlyle will also have to disclose contributions to any politicians in a state — such as governors, mayors or legislators — in which it does pension business.
“This is a revolutionary agreement,”
  blog it

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