Hedge fund boss James Dinan told fellow hedge funders to prepare for an onslaught of regulation because a whole lot more is on its way, the WSJ reports.
And if anyone's looking for the *reason* for all of this increased regulation, Dinan thinks they should consider John Paulson's immense profits.
From the WSJ,
The average guy who reads this, votes, and it is not making him feel good,” Dinan said, adding that when hedge fund managers make “large sums of money,” it is met with the reaction that “something is wrong here.”
The CEO of $15 billion fund, York Capital Management, says regulators “need scapegoats,” and that an inventory of recent regulatory moves, plus media reports of multi-billion-dollar profits, will lead regulators wandering over into the generally glossed over hedge fund community.
In our opinion, the most obvious reason for increased regulation is the FBI's huge insider trading investigation, which seems to be completely rewriting the rules for acceptable trading of information between analysts and investors.
Or it could be Long Term Capital management's blowing up in 1998 (regulators aren't the quickest ones) and its similarities to 2008's crisis. Or it could be Madoff. Or the fi cri.
But Dinan is also a hedge fund manager, and he thinks John Paulson's 2010 $5 billion profits is a problem for their bunch. And he's doing his part flying commercial over private. So consider his take on it the situation than ours.
He says it "stokes the public anger and potentially prompts action from lawmakers."
