The U.S. Supreme Court affirmed without comment a lower court ruling upholding a ban on soft-money contributions to political parties.

From The Hill – “Supreme Court affirms ban on soft money,” by Russell Berman  6-29-2010

From The New York Times – “Supreme Court Affirms a Ban on Soft Money,” by Adam Liptak  6-29-2010
photo from CC-BY-SA-3.0/UpstateNYer at Wikipedia.

The Securities and Exchange Commission (SEC) is poised to consider new regulations prohibiting hedge funds and private equity firms from making political contributions to public officials who award public pension fund management contracts. The SEC initially considered an outright ban on what had become known as placement agents: middlemen who solicited government pension funds on behalf of securities firms looking to tap into the $2.4 trillion public retirement fund industry.

After pushback from industry and Congress over the proposed elimination of placement agents, the SEC is instead considering rules regulating improper pay-to-play practices connected to public pension funds. One proposed rule will limit direct and indirect political contributions by investment advisers seeking pension fund contracts.

New penalties for violators for pay-to-play violators are also under consideration. For instance, advisers who make political contributions to an elected official in a position to influence the selection of the adviser would face a two year bar from providing advisory services to a fund. The SEC is expected to vote on the proposed rules June 30, 2010.