Straits Times – Hedge fund executives at the conference said Mr Obama’s deal undercut bankruptcy court rules that have long given priority to secured lenders. The White House move and its combative stance with hedge funds may keep some managers on the sidelines or chill investment in some companies.
Mr Gary Kaminsky, former managing director at Neuberger Berman, told conference members that government involvement began last March with the forced sale of Bear Stearns to JPMorgan Chase and has not let up since.
‘You have to assume the government will be involved. You have to assume the free market is not as free as it was in the past and won’t be for the next 20 years,’ Mr Kaminsky said.