New York AG Probes Private Equity Tax Practice; Pointing the Finger at Facebook Exec: Roundup

If you missed it over the weekend, New York Attorney General Eric Schneiderman is investigating the tax practices of private equity firms. At the center of the inquiry is the practice of converting management fees into investments that are taxed at more favorable rates. The private equity industry says such conversions are widely practiced and accepted; here’s a tax lawyer who says they’re illegal.

Andrew Ross Sorkin says the Facebook executive most responsible for the company’s failed initial public offering has largely escaped blame.

A former partner at Dewey & LaBoeuf is suing Citigroup, charging that the lender helped hide the law firm’s financial problems.

An Argentinean judge issues an arrest warrant for Credit Suisse exec David Mulford, who’s wanted for failing to testify in a probe of the country’s 2001 debt default.

Multinationals such as American Express and Spanish bank BBVA are dabbling in venture capital, according to The Times.

Jim Cramer gets better ratings when Mad Money re-airs at 3 a.m. The Post figures drunken traders may be the target audience.

European Central Bank President Mario Draghi, speaking at a closed session of the E.U. parliament, suggested that central bank may start buying government debt maturing inside of three years.

Spain’s bank bailout fund will inject $5.7 billion in Bankia.

The French government stepped in to bail out Paris-based Credit Immobilier de France over the weekend; now it says the deal can work without costing the taxpayer.

U.S. firms are planning for a Grexit, according to The Times: Bank of America Merrill Lynch has looked into filling trucks with cash and sending them over the Greek border so clients can continue to pay local employees and suppliers in the event money is unavailable.”