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Patterson Calls Off Tax On Non-Resident Hedge-Fund Managers-- WHAT WILL JODI RELL DO NOW?

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As has been previously mentioned, Connecticut Governor Jodi Rell wants a piece of New York-based hedge fund managers who don't reside in the state. Earlier in the month she saw an opening when Albany proposed laying a $50 million tax on those managers only doing business in the state and she pounced. She started off by sending them a “simple yet heartfelt message” (which was “Connecticut welcomes you”). She then upped the ante last week by inviting them to not just a steak dinner but "an intimate dinner" (yes, intimate, now). “We have much to discuss! The meeting will be intimate, direct and private,” she said, maybe overselling. She set the date for August 2 and while it wasn't clear whether anyone had RSVP'ed, Rell could just feel it was going to be a big night. Now, because he is a jerk, David Patterson has all but ruined Rell's plans.

New York Gov. David Paterson has backpedalled on a controversial proposal for an extra tax on hedge-fund managers that do business in New York but live elsewhere, his press secretary said Friday. In an email, Morgan Hook said: "That provision was removed and will be removed again when the governor submits a proclamation for special session for Wednesday when he calls the legislature back." The proclamation aims to call for a special session of the state legislature to consider measures required to complete the state budget. The proposal to tax nonresident hedge-fund managers, which would raise an estimated $50 million a year to help bridge New York's $9.2 billion current-year deficit, has sparked concerns that managers would relocate their funds to neighboring Connecticut. Its governor, Jodi Rell, said she would welcome the funds with open arms. Tim Selby, president of the New York Hedge Fund Roundtable and an attorney at Alston + Bird LLP, said he welcomed Paterson's decision. "I am encouraged that our legislative body in New York was open-minded enough to see the likely consequences of an ill-conceived piece of legislation before it was too late," he said. "This could have been the commencement of a tipping point that would gave been disastrous for New York City."

NOOOOOOO! Do you hear that? That's the sound of a woman freaking the fuck out in Southern Connecticut. Sure, nothing was set in stone but she's already made the seating arrangements-- Patterson can't do this! Alright, don't freak out. Just everybody calm down, this can be salvaged, so long as everybody thinks. Think god damn, it, think. How can Rell make this dinner work in her favor, now that she and her guests actually don't have anything to talk about at all? We suggested last week that CT's most infamous hedge fund managers make an appearance on the wait staff and while passing out various courses, help the governor make her case. Now more than ever, that seems like the right idea, as does tricks with Maraschino cherries and some well-time thigh rubbing under the table.


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Hedge Fund Manager Are Sad

And dying from a form of cancer that attacks alpha generation, they say.