Connecticut is home to many hedge funds and hedge fund managers who have made Greenwich a Disneyland-ish mecca for the industry's top dogs. The state's attorney general, Richard Blumenthal, has become convinced that the industry is in need of change, especially in the area of reform and oversight. This at a time when the SEC is having trouble asserting itself as a regulator of hedge funds. Blumenthal has given birth to the Hedge Fund Task Force, which could pave the way for a more incisive investigation. He's on tricky ground. There's an obvious trickle-down factor at work. If worst comes to worst, these funds could easily relocate.

For more on Blumenthal:
- Here's a Fortune article