Steve Schwarzman, head of the private equity giant Blackstone Group (Blackstone news), was forced to apologize for his comments that compared the President to Adolph Hitler. The comments reportedly stunned the audience.

This didn't appear to be a move to play to the Tea Party, but rather a spontaneous and regretful voicing of his personal disgust with efforts to tax private equity gains at something other than the long-term capital gains rate.

The New York Post notes that Schwarzman also ignited a controversy last year, when he made another World War II reference. "At that time, he compared the sub-prime mortgage crisis to Nagasaki, Japan, after the United States dropped an atomic bomb on the city," the Post reports. The bomb left the city "with noodle salesmen with few noodles or customers," said Schwarzman.

Okay, he's perhaps not the smoothest public speaker. In a debate, the President would likely have his way with him. But Schwarzman is passionate about defending his interests. He and other private equity executives are girding for war over the carried interest tax issue.

The Private Equity Council, a lobbying group, is asking members to wage a "grassroots" campaign against the tax hikes by approaching their local Congressmen. When Congress comes back in session, this will undoubtedly crop up again. More executives will be willing to come out swinging at the President this time. Of course, some of those people may also be contributing to his campaign. The nexus of Wall Street and Washington can be strange.

For more:
- here's the NY Post article

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