Profiting from the credit crisis

Does it ever seem that the financial services world is one big insiders game, even when it comes to regulatory activity? Here's how Business Week puts it: "Some of the finance outfits being tapped by Washington to clean up the mess are the same ones that helped cause it." Obviously it's a clubby world. The Goldman Sachs-public service link has been well discussed. So has the Treasury's move to hire Morgan Stanley to help it evaluate Fannie Mae. When IndyMac went down, the FDIC turned to none other than Lehman Brothers for analytical help. Lehman's woes ended up delaying the IndyMac auction. Now, a host of firms are jockeying to manage assets that are bought up by the bailout fund. BlackRock and PIMCO are in that pack.  

For more:
- here's the Business Week article