From the Chrysler bankruptcy to pending regulations, the
industry finds itself playing catchup
By Michelle Celarier
When the Obama administration flexed
its political muscles against hedge funds during the Chrysler
bankruptcy brouhaha, it came as a rude awakening to many in the
industry. The rules of the game appear to be changing -
sometimes quite dramatically - on everything from regulating
leverage and short sales to bankruptcy and distressed
investing. Even as the industry's main lobbying group, the
Managed Funds Association, moved finally to embrace
registration last month, the political issues raced ahead.
"I was shocked," says one of the self-described non-TARP
lenders who initially refused to cave in to the
administration's demands to accept 29 cents on the dollar to
avoid a lengthy bankruptcy that would spell doom for Chrysler.
"Obama's out there on national TV threatening to crush us. This
is Banana Republic behavior," he hyperventilates. President
Barack Obama called...