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Bailout is a Bad Idea By Janet Tavakoli, Tavakoli Structured Finance LIPPER HedgeWorld – Opinon Section - Wednesday, June 27, 2007 I am a proponent of minimum regulation of hedge funds, and Bear Stearns just made my position harder to defend. Banks and investment banks will have a harder time winning the argument that their off-shoot hedge funds are truly independent. How can these funds be truly off-balance sheet when prime brokers seemed to think Bear Stearns should assume the hedge funds' liabilities like a parent stepping in on behalf of a minor child? If Bear Stearns is the lender of last resort, then it makes it seem that the entire prime brokerage industry is a sham. Do lenders expect to earn risk-free fees? Perhaps these are merely acting fees—for acting as straw men. END OF EXCERPT Article is available via the above link to subscribers of HedgeWorld.com or to clients of Tavakoli Structured Finance. Clients of Tavakoli Structured Finance also have access to proprietary TSF research, which is not published in any other paid or public forum. Please click here for other articles.
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Janet
Tavakoli, President: jt@tavakolistructuredfinance.com
TEL: (312) 540-0243 |