The hedge fund industry has led a charmed life. But with Eliot Spitzer on the warpath, the industry might want to reconsider its aversion to regulation of any sort. Before any more 'bad apples' fall from the tree, it's high time for hedge funds to start shaping the debate on regulation, rather than burying their heads in the sand and pretending that everything is fine. It isn't. You need look no further than Canary Capital Partners to see that all is not well.
On September 3, Attorney General Eliot Spitzer announced an investigation of at least four mutual funds