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Alibaba News Channel – Aggressive government action can hurt the market, but regulators should clamp down on leverage among banks and investors to prevent another credit crisis, veteran hedge fund manager Paul Singer said at a conference.
Singer said the current "anti-capitalist" fervor, inspired by last year’s market meltdown and the ongoing recession, will likely lead to increased regulation. These measures would only prolong the problem, he told some 1,200 hedge fund executives at the Ira Sohn Investment Research Conference on Wednesday.
By the same token, he observed that highly regulated banks fueled last year’s market implosion because they ramped up their use of leverage, or borrowed money, for trading and investments. High levels of leverage in a downturn can multiply losses and throw markets into chaos.
Forbes – Aggressive government action can hurt the market, but regulators should clamp down on excessive borrowing by banks and investors to prevent another credit crisis, veteran hedge fund manager Paul Singer said at a conference.
Singer said the current ‘anti-capitalist’ fervor, inspired by last year’s market meltdown and the ongoing recession, will likely lead to increased regulation. These measures would only prolong the problem, he told some 1,200 hedge fund executives at the Ira Sohn Investment Research Conference on Wednesday.
Reuters – Aggressive government action can hurt the market, but regulators should clamp down on excessive borrowing by banks and investors to prevent another credit crisis, veteran hedge fund manager Paul Singer said at a conference.
Singer said the current "anti-capitalist" fervor, inspired by last year’s market meltdown and the ongoing recession, will likely lead to increased regulation. These measures would only prolong the problem, he told some 1,200 hedge fund executives at the Ira Sohn Investment Research Conference on Wednesday.
Seekingalpha.com – First, the veteran can lose money just as easily as the rookie.
Second, and more perniciously, just because a young money manager has been humbled does not mean he now shares your thinking about risk. And in a few years’ time, when young hedge fund managers are back raising money for new funds, and they boldly advertise "I’ve learned my lesson," don’t be so quick to believe them.
The game of institutional investment management (especially for family offices) is largely about the Old and the Rich entrusting their capital to the Young and the Poor. But as every older person, no matter how wealthy, knows, the young will always be richer in the one thing that matters most–time. It’s perfectly rational for a younger person to take more financial risks because if things don’t work out he can always start over.
New York (HedgeCo.Net) – Marc Dreier was denied bail on Thursday after prosecutors estimated the New York attorney swindled more than $380 million out of investors in his elaborate scheme that targeted hedge funds.
Alleging that Dreier fooled “the most sophisticated investors in the world,” prosecutor Jonathan Streeter convinced Judge Douglas Eaton that he may be a flight risk. Streeter emphasized the fact that Dreier has extensive contacts around the world where the money may be hidden. Dreier’s legal team had sought a $10 million bail package with house arrest.
Streeter said the alleged fraud had been in the works since January 2006 and called Dreier a “Houdini of impersonation and false pretenses.”
It was first estimated that Dreier duped about $113 million from investors by selling fake notes tied to a bogus real estate development company based in New York. He then allegedly covered up the scheme by producing false documentation and financial statements. While it was first believed that only a few prominent big-name hedge funds were targeted, new evidence supports the theory that Dreier may have targeted many more funds.
His firm, Dreier LLP, also suddenly had millions missing from its client escrow accounts. According to court papers, Dreier is the only one authorized to make transfers from these accounts. Strangely enough, Dreier transferred $10 million to a personal account from the escrow account via telephone while being held in a Canadian jail last week for criminal impersonation charges.
Julie Scuderi Senior Editor for HedgeCo.Net Email: julie@hedgeco.net
