In the Crosshairs; As Washington grows hungry for regulation, private equity professionals are watching the saga unfold with trepidation.(LBO Watch)

Byline: Jonathan Marino

Wall Street was the first to get Washington's responsibility manifesto. The areas targeted by legislators, perhaps predictably, have been executive pay, corporate junkets, and transparency - in fact, far more transparency is expected to be the new rule. What that means too is that any politician who wants to get on TV can simply second guess how the banks are using their money. While it hasn't happened yet, many in private equity are anticipating, with growing trepidation, the same kind of attention.

It remains to be seen precisely how the asset class will be affected by Washington's push to apply a stronger regulatory grip, although change is already sweeping through the industry. President Barack Obama's budget, unveiled in February, takes direct aim at PE compensation with tax hikes and a proposal to treat …