October 12, 2008 |
The $700 billion bailout may or may not unclog the nation's financial system. But what it would surely do, experts say, is create opportunities for clever investors to game the system. "I think everyone who is in the financial-services business is busting a gut right now trying to figure out where" the money can be made, said Richard D. Jones, a partner at Dechert L.L.P. who focuses on mortgage finance and capital markets. As the U.S. Treasury Department begins implementing the bailout program - the first contractors might be hired this week - the nation's financial problems only deepened.
October 4, 2008
Palin's disservice With Sarah Palin's unchallenged assertion early in the debate that "I may not answer the questions that either the moderator or you want to hear, but I'm going to talk straight to the American people," she gave herself permission to ignore many questions. But it was a great disservice to those same American people. Committing to a debate is not breaking your prepared remarks into 90-second segments. It is agreeing to answer a variety of questions to demonstrate your depth of knowledge.
September 24, 2008 |
Treasury Secretary Henry Paulson's $700 billion bailout of Wall Street essentially places the federal government at the helm of the world's biggest hedge fund. After all, isn't that what this bailout is proposing to do with taxpayers' money? Under the plan, Paulson will invest $700 billion - at his discretion, with no strings - into so-called mortgage-related assets. That sure sounds like a hedge fund. So shouldn't we - or the fiduciaries we've elected to Congress - ask some of the same questions an investor would ask before putting his or her money into a hedge fund?
August 20, 2008 |
A federal judge in Philadelphia has ordered a former hedge fund operator with offices in King of Prussia and Toronto to pay $279 million in restitution to investors and a $12 million civil penalty. Judge Michael M. Baylson, of the U.S. District Court for Eastern Pennsylvania, last week issued the consent order in the three-year-old case involving $202 million in investor losses. Federal regulators alleged in a June 2005 civil lawsuit that Ontario resident Paul M. Eustace defrauded investors in Philadelphia Alternative Asset Management Co. L.L.C.
October 11, 2007 |
Driven by an improving regulatory and investment climate, the European hedge fund industry is growing rapidly and could shortly overtake the U.S. industry, an investment analyst contended yesterday at a conference organized by Philadelphia's Dechert L.L.P. law firm. Segun Aganga, managing director of equities for the Goldman Sachs Group Inc. in London, said a more favorable regulatory climate, an abundance of capital, and a location central to American and Asian markets were helping to boost establishment of hedge funds in Europe.
September 11, 2007 |
Demanding further intervention from the Federal Reserve to protect their endangered fortunes, thousands of the nation's leading hedge-fund managers marched on Washington today. Dubbed "The Million Mercedes March," the protest was said to be the largest chauffeur-driven demonstration in the capital's history. Limousines started jamming the streets of Washington at approximately 10 in the morning as irate hedge-fund owners converged on the Federal Reserve building to demand stronger action to protect their imperiled riches.
March 30, 2007 |
The National Football League and the NFL Players Association lost a bid to dismiss a lawsuit by players claiming the organizations recommended unfit financial advisers and caused them to lose $20 million. A federal judge in Atlanta ruled yesterday that former Denver Broncos defensive back Steve Atwater and six other players may proceed with their case over lost investments. They sued in June after the operator of the hedge fund International Management Associates LLC, recommended to them by the league and the union, was arrested for cheating investors.
November 3, 2006 |
Gartmore Global Investments could be split in two as its Ohio owner, Nationwide Mutual Insurance Co., considers shifting most of the West Conshohocken mutual-fund family into a publicly traded subsidiary. Gartmore, whose European hedge-fund operation was sold in September, employs 275 people, and has about $46 billion under management, spread among retail and institutional clients. People familiar with the matter said local Gartmore executives have proposed a management-led buyout of its $7 billion actively managed mutual-fund business, which those people said Nationwide does not want.
September 23, 2006 |
Philadelphia's pension fund has spread its bets - just in time to take a small hit on the latest hedge-fund blowup. Four of the eight hedge-fund-management firms that the City of Philadelphia's pension board hired in the last year invested a total of $8 million in Amaranth Advisors L.P. Connecticut-based Amaranth warned clients this week that it may have lost 65 percent of its $9 billion in customers' investments due to bad bets on the price of...
September 21, 2006 |
State pension funds in Pennsylvania and New Jersey are among the U.S. investors bracing for losses due to bad bets on natural-gas futures by Amaranth Advisors L.L.C., one of the nation's largest hedge funds. Amaranth, which managed about $9 billion, told investors earlier this week that it expected losses of more than 35 percent because of a drop in natural-gas futures that took its trading desk by surprise. The loss is a black eye to the secretive hedge fund industry, which has boomed in recent years.