Is there a case for supervision of alternative investment funds? A new working paper

The task of financial regulation can be broken up into consumer protection (where we worry about small consumers being cheated by financial firms), prudential regulation (where we worry about the possibility of bankruptcy of one financial firm) and systemic risk regulation (where we worry about the procyclicality of financial regulation). Everything that we do . . . → Read More: Is there a case for supervision of alternative investment funds?

From Alphaclone via SeekingAlpha: Galleon Group’s 50 Largest Holdings

My first employer on Wall Street was the world’s largest pension fund; my second, the fastest growing hedge fund. When I was at the first and interviewing for the second, I had this idea that the best hedge fund were investing on some higher plane, with qualitatively different instruments and strategies put to use . . . → Read More: From Alphaclone via SeekingAlpha: Galleon Group’s 50 Largest Holdings

Senate Investigation: Major Financial Institutions Helped Hedge Funds Avoid Taxes

A year long probe by Senate Permanent Subcommittee on Investigations which relied on internal bank documents and emails has found that some of the nation’s biggest investment banks and brokerage firms including Morgan Stanley, Citigroup, Lehman Brothers, and Merrill Lynch & Co marketed allegedly abusive transactions that helped foreign hedge fund investments avoid . . . → Read More: Senate Investigation: Major Financial Institutions Helped Hedge Funds Avoid Taxes