Wednesday, April 15, 2009

Depression 2.0: $100B Hedge-Fund Bailout May Skirt Law

The Obama administration's $100-billion bailout of hedge funds skirts U.S. law in order to keep regulators from shutting down insolvent institutions, says this report from Mother Jones. "Now take a deep breath and let's boil it all down," writes Zach Carter. "Our treasury secretary hopes to circumvent laws enacted to protect the economy by subsidizing a bunch of multimillionaire investors—ostensibly to help regulators fulfill their most basic job description—in a bid to prop up bankers who cooked their books to support a gambling binge and still refuse to admit they lost. Or maybe they haven't. In a game thus rigged, there are only two sure-fire losers: you and me."

TAGS: investigations, marketfinance

No comments: