Hedge Fund Politics
Hedge Fund Politics | Government Intervention
Below is an excerpt from interesting opinion piece from a political blog called The Political Bear. I don't like to discuss politics here as the purpose of this blog is to provide an educational resource on hedge funds but I thought this was worth your quick review:
While it was only a matter of time before the narrative that main stream media is telling about the potential congressional gains for the democratic majority went to their head, it is amazing that they have taking it so far so fast.
On Saturday, the Financial Services Committee sent out a press release that demanded that hedge funds drop their opposition to foreclosure prevention, and if their opposition was not dropped the committee warned of tougher legislation.
“Many in the financial community have objected to the argument many of us have made that homeowners should be allowed to invoke the protection of the bankruptcy laws on single family residences, as they are on second and third homes. The argument in the financial community has been not only that this would be damaging, but that it would not be necessary to achieve the economically desirable result of reduced foreclosures. But the decision of these two companies actively to oppose our efforts to achieve voluntary compliance quickly undercut that argument, and people in the financial community should not be surprised if this sort of blatant refusal to show any cooperation whatsoever with our efforts leads to an increased demand for much tougher legislation.”
Furthermore this press release not only announced their displeasure with several hedge funds, but even referred to the hedge funds directly in an attempt to discredit their actions. Congress should never threaten actions against individual institutions, but possibly more troubling is the abuse of its leadership role by making slanderous accusations meant to publicly discredit and threaten specific investment institutions during the current economic instability just to pressure a company into compliance.
“In light of this, we were outraged to read that two hedge funds, Greenwich Financial Services and Braddock Financial Corporation, are instructing the servicers of their mortgages to defy this national program and to insist on further socially and economically damaging foreclosures.” Read more...