We've noted that the balance of power in the hedge fund industry has shifted in part due to big investors who, at a minimum, want more control over their assets. Hedge funds, in turn, want more control over their prime brokers, though its unclear if they wield a lot more clout now than before the crisis. The Economist notes that hedge funds these days want assurances that some assets are kept in segregated client accounts. These accounts, moreover, should essentially be custodial accounts, "so that prime brokers have absolutely no claim over the assets in them." It was standard not so long ago for primes to "rehypothecate" funds, meaning use clients funds to secure more funding themselves. Goldman Sachs and Morgan Stanley still rule the roost, but the new era may favor the likes of Citigroup and JPMorgan Chase, which have large custodial functions, the magazine notes. Then again, Goldman and Morgan may have designs on custodial banks like State Street and Northern Trust.

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