First the blame, then the pain


By Michelle Celarier, editor

The seemingly unending financial crisis spilled over to hedge funds in unusual ways this summer. First, not surprisingly, was the blame game: As more financial institutions teetered on the edge of collapse, the Securities and Exchange Commission started subpoenaing hedge funds over their shorting of both Bear Stearns and Lehman Brothers.

It must be galling to the banks, who've lost their best people to hedge funds in recent years, that these upstarts are actually making money off the banks' own short-sighted greed. But hedge funds feel their pain. Many brand name funds are in the