Each business day HedgeCo.Net keeps you informed with the top hedge fund industry news, opinion and insight from around the globe. From the latest hedge fund launches, to the impact of regulation, competition, and investor activism - we track the topics and people that make a difference to you.
Los Angeles Times – Financial giants and other large firms now being bailed out by the government spent millions underwriting the Democratic and Republican conventions last summer, just weeks before coming to Washington seeking multibillion-dollar handouts.
The big donors included AIG, Ford Motor Co., Citigroup, Goldman Sachs and Freddie Mac.
In all, major corporations, labor unions and individual millionaires poured $118 million into the nominating conventions for Barack Obama and John McCain, according to reports from the Campaign Finance Institute and the Center for Responsive Politics. The nonpartisan private groups compiled the numbers from filings required under federal law.
New York Times Blogs – After pouring money into Barack Obama’s campaign, what can hedge funds and their executives expect from the new president?
If history is any exmaple, says FINAlternatives, they shouldn’t expect a cuddly relationship.
Mr. Obama didn’t appear sympathetic to the industry on the campaign trail, the publication noted, calling John McCain the candidate of “Joe the Hedge Fund Manager,” a riff on McCain’s pledge to serve the “Joe the Plumbers” of the U.S.
And during his time in the Senate, FINAlternatives noted, Mr. Obama sponsored a bill that would have required hedge fund managers to set up anti-money laundering programs supervised by the Treasury Department. (The Treasury abandoned a similar proposal last week).
The president-elect has also backed tax proposals that increase the burden on hedge funds and private equity shops, the publication said.
BusinessWeek – For the first time in 76 years, a financial crisis is occurring at the same time as a Presidential election. Based on recent polls, the coincidence seems to have boosted the chances that Illinois Senator Byearack Obama, the Democratic nominee, will defeat Republican Arizona Senator John McCain on Nov. 4.
The financial crisis has affected the Presidential race, but how is the election affecting the financial markets? Pundits offer endless theories on that question, and their answers are often suspiciously similar to their political views.
Thus, right-leaning market experts insist Obama’s tax proposals would be disastrous for investors. More liberal Obama supporters insist the market will celebrate if he is given the job of leading the world out of the financial crisis.
Bloomington Pantagraph – Democrat Barack Obama on Wednesday brushed aside Republican charges that his tax plan amounts to socialism, but acknowledged it involves “spreading around opportunity’’ so that wealthier Americans — like himself — pay a little more to help lower-rung workers. |
Obama noted that when President Bush’s tax cuts were first proposed, his opponent for the White House, Republican John McCain, opposed them as irresponsibly targeted.
“Was John McCain a socialist back in 2000?’’ Obama asked at a news conference. Responding to the late-campaign line of attack repeated daily by McCain and running mate Sarah Palin, he said: “I think it’s an indication that they have run out of ideas.’’
Obama commented at a news conference after meeting with foreign policy and military luminaries to discuss “urgent issues’’ facing the country from abroad, an attempt to inoculate himself against the fresh charge from the McCain side that he is too untested for the White House.
KTAK – U.S. lawmakers and President George W. Bush eased pressure on financial markets on Tuesday by starting work to revive a $700 billion bailout plan to stem a credit crisis that has spread beyond Wall Street to claim more European banks.
U.S. stocks roared back — a day after their worst sell-off in 21 years — and the dollar rallied as investors bet Washington would manage to salvage a package to stabilize the financial sector after Monday’s shock defeat on Capitol Hill.
The Standard & Poor’s 500 index shot up by more than 5 percent, the biggest one-day gain for that measure of the broad market in six years.
The relief rally came as the White House, Treasury Secretary Henry Paulson and the two candidates hoping to succeed Bush as president, Republican John McCain and Democrat Barack Obama, reaffirmed their support for a bailout plan. Congressional leaders started talks to relaunch the package this week.
Edmonton Sun – Stop worrying about a carbon tax driving up the cost of everything we buy after this election.
Start worrying about a cap-and-trade carbon market doing the same thing.
Canada will only get a carbon tax if Liberal Leader Stephane Dion wins a majority government Oct. 14, or a minority in which Green Party Leader Elizabeth May holds the balance of power — both unlikely.
By contrast, it’s very likely the next Parliament will create a cap-and-trade system.
To varying degrees, Prime Minister Stephen Harper, NDP Leader Jack Layton, Bloc Leader Gilles Duceppe, Dion and May all support cap-and-trade, as do U.S. presidential contenders Barack Obama and John McCain, neither of whom supports a carbon tax.
The American position will put economic pressure on Canada to adopt a cap-and-trade system consistent with the U.S. Both countries already have voluntary carbon markets whose volume would skyrocket under cap-and-trade.
There’s also more support for cap-and-trade, rather than a carbon tax, among provincial governments.
Politicians prefer cap-and-trade to carbon taxes because they never have to say the word "tax," which is also why Dion doesn’t talk about carbon taxes but a "green shift."
But cap-and-trade does exactly what a carbon tax does — puts a price on emitting carbon — an added cost to businesses they will pass along to us for everything we buy from utilities to fuel, manufactured goods and food.
NationalJournal.com – Among the elite and deep-pocketed GOP fundraisers and donors at the convention, few can rival Paul Singer, a New York hedge-fund tycoon who has raked in more than $500,000 for the John McCain campaign. Earlier, he raised a similar sum similar for his first presidential choice — former New York City Mayor Rudy Giuliani.
At this week’s GOP gathering, Singer is putting on a notable and offbeat display of largesse. An unabashed conservative who has made his fortune by running Elliott Associates, a $7 billion hedge fund, Singer is underwriting both serious and lighter forums this week featuring a mix of Hollywood stars, media celebrities, and national and state political leaders.
Those in GOP money circles who know Singer, a big fundraiser for President Bush and conservative "527" political groups in 2004, describe him as a moneyman who likes to have an impact but prefers to avoid the limelight.
"He has the resources and a passion for politics," says Brad Blakeman, a former White House aide who is doing commentary this week on Fox News. "He’s doing serious stuff and tongue-in-cheek stuff."
HedgeFund.Net – According to Joseph Biden, the hedge fund industry and private equity deserve the blame for the global credit crisis.
The Delaware senator and running mate of Democratic presidential nominee Barack Obama made that assertion in a primary debate last year when he was himself running for president. Obama, a senator from Illinois, is running for president against Arizona Sen. John McCain.
During that debate Biden, named vice president on the Obama ticket over the weekend, characterized the hedge fund industry and private equity as “no transparency, no accountability.”
The alternative space was “causing this thing to go under,” he said in the debate.
New York Times – In an effort to cast himself as independent of the influence of money on politics, Senator Barack Obama often highlights the campaign contributions of $200 or less that have amounted to fully half of the $340 million he has collected so far.
But records show that one-third of his record-breaking haul has come from donations of $1,000 or more: a total of $112 million, more than Senator John McCain, Mr. Obama’s Republican rival, or Senator Hillary Rodham Clinton, his opponent in the Democratic primaries, raised in contributions of that size.
Behind those larger donations is a phalanx of more than 500 Obama “bundlers,” fund-raisers who have each collected contributions totaling $50,000 or more. Many of the bundlers come from industries with critical interests in Washington. Nearly three dozen of the bundlers have raised more than $500,000 each, including more than a half-dozen who have passed the $1 million mark and one or two who have exceeded $2 million, according to interviews with fund-raisers.
While his campaign has cited its volume of small donations as a rationale for his decision to opt out of public financing for the general election, Mr. Obama has worked to build a network of big-dollar supporters from the time he began contemplating a run for the United States Senate. He tapped into well-connected people in Chicago prior to the 2004 Senate race, and once elected, set out across the country starting to cultivate some of his party’s most influential money collectors.
