Treasury nominee participated in controversial transactions

Jay Heflin
The Hill

Jeff Goldstein, the nominee for Treasury Under Secretary for Domestic Finance, between 2004 and 2008 participated in 10 “blocker” transactions when he was Managing Director and Partner at Hellman & Friedman, according to documents received by the Senate Finance Committee.

Blocker transactions are highly controversial since it is unclear whether they serve any purpose other than delaying tax payments to the U.S. Of the 10 transactions Goldstein participated in, 5 were organized in the Cayman Islands, a common destination for tax shelters.

Goldstein also had a “carried interest” in these investments, meaning his compensation was taxed as the capital gains rate of 15 percent instead of ordinary income rates, which currently tops out at 35 percent.

In documents delivered to the Finance Committee, Goldstein repeatedly stated that he was not a tax expert and that he would diversify all investments in these transactions if his nomination were accepted.

The article continues at The Hill.

Comments are closed.