Detroit News – President Barack Obama is ready to roll out an overhaul of the intricate rules and systems that govern America’s troubled financial institutions, proposing the most ambitious revision since the Great Depression.

The goal is to prevent a recurrence of the economic crisis that erupted in the United States and exploded last fall with devastating consequences still reverberating around the world.

Unlike the government’s temporary ownership stake in automakers and major financial companies, the regulatory changes set to be announced Wednesday are designed to be permanent. They could result in a major realignment of power and authority among government agencies that set the rules for banking, lending and investing and touch American lives through daily transactions, from credit cards to mortgages and mutual funds.

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New York Times Blogs – The biggest regulatory changes since the 1930s are bearing down on the U.S. securities and investment industry, and many firms are ill-prepared, according to a new study by research firm TowerGroup.

From derivatives and hedge funds to capital standards and short selling, the range of issues “encompasses almost every line of business and every functional area,” TowerGroup senior research director Dushyant Shahrawat told Reuters.

Business models will adapt or perish in the new order, which regulators aim to make more transparent, accountable and globally consistent, according to the report released on Thursday.

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New York (HedgeCo.Net) – Victory Park Capital, a Chicago-based hedge fund, has received a vote of confidence from FRM Capital Advisors in the form of a major investment.  Victory Park Capital plans on expanding their asset-based lending fund in hopes of taking advantage of the favorable market conditions associated with this kind of strategy.

“We are delighted to have the opportunity to partner with such an experienced team,” says FRM Chief Executive Clive Peggram.  “We believe it is a very good time in the credit cycle to pursue an asset-based lending strategy.”

Victory Park Capital Advisors was founded last year and provides asset-backed loans to companies who are in need of financing and can’t always turn to the bank.  Asset based lending is a popular strategy in today’s current market turmoil with the large amount of high rises and other developments being constructed.  High interest rates are usually tacked on the loans, while the building is put up as collateral.    

“We’re very pleased to form a relationship with Victory Park Capital,” says Blaine Tomlinson, FRM’s founder and group chairman.  “As an established and experienced team, they are in an excellent position to capitalize on the attractive financing opportunities available to those who have capital to deploy.”

FRM Capital Advisors is active in the hedge fund seeding industry, seeking out potential opportunity among new funds.  Hedge fund seeding is a great way for new funds to get the capital needed to get off the ground.  Companies who provide the financing will work out some sort of the deal with the fund, perhaps sharing in the profits once the fund starts posting returns.

“We are incredibly excited about our relationship with FRM Capital Advisors and we are gratified that it has concluded that our team and strategy warrant such a significant investment,” said Victory Park Managing Principle Richard Levy.

FRM is a global fund of hedge funds group with over $15 billion of assets under management.

Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net

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