Spitzer Playing Favorites, Hurting Taxpayers?

Motions to dismiss are not usually interesting, but the NY Post is reporting that this former NYSE Board member is claiming that Spitzer's suit against him regarding Grasso's compensation is flawed.

According to the Post, Langone's spokesman said
"'Apparently, Mr. Spitzer thought that bullying tactics would hide the fact that his case is only an inch deep and is riddled with favoritism,' said Langone spokesman Jim McCarthy. 'Taxpayers are the ones being hurt here since they are paying for Mr. Spitzer's legal misadventure and any money would be returned to the millionaires of the New York Stock Exchange.' "

Investors use hedge funds more, but expect less

Investors use hedge funds more, but expect less

The SEC says that hedge funds need to be regulated because too many investors are becoming involved. Recently a new justification is being floated - that too much pension money is going into the funds. implying that more of the "average" investors' funds are a risk, and that pension managers need the protection of the SEC.

Well, given the stellar job that the SEC did with Tyco, Enron, the research analysts and late trading in mutual funds, we can understand why some are not so sure that SEC regulation is the solution. Assuming of course that there is a problem.

And pension funds have always been permited to invest in hedge funds - they are clearly one class of investors who are qualified to do so - professionally managed money in professionally managed funds.

If there was any doubt about the ability of pension fund managers, and other sophisticated investors having the ability to make investment decisions for themselves, with the protection of an all knowing big brother, this article sheds some light on the topic.

But it appears that the pension funds can take care of themselves.

Donaldson Backs Plan for SEC to Register Hedge Funds

We are getting closer and closer to registration of hedge fund managers, if not the funds themselves. While the media is reporting that "hedge funds" will register, it appears that the SEC will, for the moment, limit registration to hedge fund managers.

While that will be a boon for securities law practitioners like myself, the impact on the hedge fund industry remains to be seen, as managers who are required to register will be required to comply with the SEC rules and regulations for RIAs - something they are not required to do today. For more information about registering as an investment advisor, email me at astarita@seclaw.com

Interesting times ahead for the hedge fund industry.

Regulators Probe Firm Where SEC Chief Was Director (washingtonpost.com)

Regulators Probe Firm Where SEC Chief Was Director (washingtonpost.com): "The Securities and Exchange Commission is probing the books of EasyLink Services Corp., a New Jersey firm where SEC Chairman William H. Donaldson served on the board until shortly before he became the agency's chairman, according to sources familiar with the investigation."

Good thing Mr. Donaldson sold all of his stock holdings when he took over at the SEC!