As of right now, the reform movement has zeroed in on the big banks and their alleged sins. Whether or not the movement results in a truly landmark piece of legislation, it seems that hedge funds (hedge fund news) and private equity (private equity news) funds have escaped relatively unscathed.

No one is taking about a "crackdown" the way they used to. In the aftermath of the Lehman Brothers (Lehman Brothers news) and Goldman Sachs (NYSE: GS) stories, talk of hedge fund and private equity regulation has been drowned out. Washington-insider newspaper Politico says this reflects the intense lobbying the alternatives industry undertook, somewhat quietly.

"More than half the 83 lobbyists registered last year to work for the industries' two trade groups, the Private Equity Council and the Managed Funds Association, have served in government--from Capitol Hill to the Treasury Department." Hedge funds will still have to register, but that is hardly a big deal. Some funds register already, per a previous requirement that was nullified by the courts. Private equity firms do not even have to register. And let's say the Volcker Rule is eventually passed, that would be good news for the industry, as it takes a way a major competitor for both industries. Already we've seen top banks sell off some alternative investments units. 

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