Dodd-Frank and Political Influence

These days especially, it’s nice to have friends in the right places in the government.

Hedge funds of any consequence, under the Dodd-Frank Act, have to register with the Securities and Exchange Commission. Unless they are considered “family office.” That is, they have no outside investors. No matter their size in multi-billions of investments at play.

The whole idea of registration with the SEC was that the size and presence of such market players, with their lack of market transparency, could make the markets risky with their actions.

Hedge funds had little to do with the 2008/2009 financial meltdown but Washington liberals still castigated them. Until now. Political influence does help. ( See the Earl J. Weinreb NewsHole® comments.)