Will regulators lower the boom on hedge funds?

Jim Kim — Thu, 16 Oct 2008 11:50:24 -0400

Hedge funds were once the poster boys for bad financial behavior, but as the TARP drama unfolds we have heard less about them. Still, the issues regarding funds have not gone away. Jim Cramer has certainly done his part to keep alive the notion that hedge funds are rogues.

When Congress gets to work in 2009, we may see some reform efforts aimed at the industry. Will the government try to lower the boom and really remake the industry? Well, an interesting email has surfaced--an email from none other than former Lehman Brothers CEO Richard Fuld. He wrote that Henry Paulson wants to "kill the bad HFnds + heavily regulate the rest." The email surfaced via Congressional investigators. Does this portend some big-time regulatory activity? Some think so. We'll see.

For more:
- here's the article

Cayne sells stake in Bear Stearns for a pittance

Fri, 28 Mar 2008 07:59:58 -0400

Jimmy Cayne, ex-CEO of Bear Stearns, has taken a huge hit. His holdings in Bear Stearns were worth more than $1 billion a year ago. The New York Times reports he just sold his entire stake for just $61 million. Ouch! This seems to be symbolic more more than anything, and a capitulation. Obviously, he holds out very little hope that a higher bid will emerge--either that, or he doesn't care. His downfall will long be remembered on Wall Street, as will that memorable page one Wall Street Journal article that recounted his pot-smoking tendencies. He's still a wealthy man, but this is a bitter end to a colorful career. Many at Bear place the blame on him. You have to wonder what his mentor, Ace Greenberg, is thinking.

For more:
- here's the New York Times article

Related Articles:
Bear Stearns execs cashed out in December. Article
Bear Stearns execs pay in harsh spotlight. Article
The future of Bear Stearns. Article
Cayne joins rogues list. Article
Open season on Cayne? A pot smoker? Article

Rogues

Will regulators lower the boom on hedge funds?

Cayne sells stake in Bear Stearns for a pittance