The Dodd-Frank law requires most private equity firms to register with the SEC by the end of March. 750 advisers will be required to disclose “census-like data” concerning their employees and investors. With all that data coming in, the SEC could be well-positioned to uncover some financial shenanigans.
Private equity firms have escaped the scrutiny of hedge funds and banks for too long, so a legitimate inquiry into their activities is welcome. But it will be hard for the inquiry to avoid becoming politicized if Romney becomes the Republican nominee.