Jacob Zamansky, of Zamansky and Associates, a New York-based securities arbitration firm, writes,
?Many argue that failure led to the worldwide credit crunch.
On Aug. 1, Zamansky & Associates filed the first arbitration case on behalf of a group of investors who claim that Bear Stearns misled them about the extent of subprime exposure in the hedge funds, misrepresented the ?risk controls? which were in place, and misrepresented the performance of the fund during calls held with investors from January to June of last year, which were designed to keep investors in the fund and dissuade them from redeeming their shares.?
When a hedge fund belches and the stench of it can be smelt around the world, something is terribly out of whack. That these super-secret societies of the absurdly rich are the largest investors on Wall Street is a frightening thing. The very nature of their business suggests they plan to capitalize on failures as much as they do successes. Many are little more than gluttonous vultures picking the bones of the dead or dying.
That vulture analogy is only half true, of course, since they often participate in the ?kill.? Some prefer to call them sharks. Either way, they are unsavory and dangerous creatures.
That a hedge fund could falter and send the financial world into a frenzy is truly frightening?and just another indication that change is more than needed; it is essential to our very survival as a prosperous, world-leading society.
That?s the Word on the Street.
Veracity Jones,