New York, NY —

The manager of New York City's $98 billion pension fund, City Comptroller John Liu, says he wants to revoke a ban on middlemen who arrange private equity deals.

The ban went into effect last spring in response to an alleged kickback scheme at the state pension fund. WNYC's Ilya Marritz explains the reversal on so-called "placement agents."

REPORTER: What Comptroller John Liu is basically saying is if they do due dilligence, if they add value, if they do more than simply have political connections and know people in power, then a placement agent is a very legitimate thing and Comptroller Liu wants to reopen the door to them.

HOST: John Liu says placement agents often represent women and minority-run investment companies and should be encouraged. But he favors banning them from making gifts and political contributions to city officials.