There are two ways to deal with an onslaught of regulatory activity when you know the cards are stacked against you. You can get extremely combative, or you can take the conciliatory route. The hedge fund industry wisely seems to be opting for the latter strategy. It has hired a former congressman who was once its biggest critic to head up a lobbying campaign that is working well.

In general it is accepting the need for reform and helping to craft specific proposals. Richard Baker, former representative from Louisiana, once proposed fund registration but was laughed down. Now, the Boston Globe notes, he's persuaded the industry to go along. This is not really a big deal. After the registration law was legally scuttled in court last year, many funds went ahead and complied voluntarily. But it is a nice symbolic act that can create some goodwill among regulators. 

For more:
- here's an article from the Boston Globe

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