Hedge Funds and Regulation
In the Obama Administration’s suggestions for future financial regulation by the Federal Reserve and the Treasury Department, the government is overlooking its previous vendetta to get after hedge funds.
The truth of the matter is this: Once you really regulate hedge funds, they no longer can operate freely as in the past. Management would be required to tip their hands in advance of investment decisions.
Despite prior threats by the Administration, hedge funds are not being hit too hard by the proposed regulations. They will remain free to perform as they had prior to the current financial mess.
This reprieve is not an oversight. It might owe to an obvious fact. Hedge funds are heavily lobbying Washington with millions of dollars worth of effort.
In the past presidential election, their funds went overwhelmingly to Democrats. They are probably destined to go the same way again.
Enough said?
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