When Merrill Lynch bought First Franklin, Morgan Stanley bought Saxon Capital and Deutsche Bank bought MortgageIT, a lot of people applauded. What a great strategic move to lock in supply for their asset-backed businesses, which were humming. Similarly, when Morgan Stanley, JP Morgan, Citigroup and a host of others bought hedge funds, similar applause could be heard. What a great way to lock in a supply of great hedge funds for customers. The New York Times wonders if there's any buyers remorse setting in. It does look like the industry collectively (and somewhat ironically) bought at the peak of the frenzy. But who knew at the time?

For more:
- here's the New York Times article [1]