D.E. Shaw and Paulson & Co.
D.E. Shaw and Paulson & Co. "Confused" About Fed Rules
Two very large hedge funds have voiced concerns to the Federal Reserve that they are "confused" about the new rules process. Last month, the managing directors for Paulson & Co. and D.E. Shaw told "expressed concerns that confusing information was circulating about both the process and likely analytical approach" to deciding which firms are systemically important and therefore subject to federal oversight.
Michael Waldorf, managing director at Paulson & Co., and Darcy Bradbury, managing director with D.E. Shaw, “expressed concerns that confusing information was circulating about both the process and likely analytical approach” to designating firms, “contributing to market uncertainty,” according to a notice on the Fed website.
The Financial Stability Oversight Council, a group of regulators that includes Treasury Secretary Timothy F. Geithner and Fed Chairman Ben S. Bernanke, is developing criteria for determining which non-bank financial firms are systemically important and therefore warrant Fed oversight. The council may begin naming companies in the middle of this year.
John Paulson, who runs the New York-based hedge fund named after him, earned about $5 billion last year, a person with knowledge of the firm said last month. New York-based hedge fund D.E. Shaw & Co. was founded by David Shaw and, according to its website, had $19 billion of investment capital as of Jan. 1. Source
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