Not too long ago, foreign government officials were only too happy to excoriate hedge funds as nothing short of Satan's tools for the massive bets they made against currencies. Are private equity funds in for the same treatment? Well, it is too early to tell, but there are signs that some officials do not look kindly on raiders of this sort. In Korea, the wrath aimed at Lone Star Funds was unexpected and harsh. It culminated with warrants issued for the arrest of the firm's counsel and founder. In many ways, this is short-sighted. If the intent is to chill investment activity, this could work. But you have to wonder if that is in the best interest of the local economy. We live in a globalizing economy after all.

For more:
- Here's a Business Week article
- Remember Citigroup took some flak on the Lone Star issue as well.