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The Fed has in recent years done a lot (billions of dollars) of buying that helped hedge funds, beginning with the bailout of Long-Term Capital Management and c
by kbutler 12y ago
The Fed has in recent years done a lot (billions of dollars) of buying that helped hedge funds, beginning with the bailout of Long-Term Capital Management and continuing through the quantitative easing.
This doesn't imply a conspiracy, but it is definitely a revolving door.
- jim_greco 12y agoLTCM was bailed out by the banks, not the Fed or anyone else in Government. LTCMs LPs got wiped out. The bailout was to contain systemic risks to the rest of Wall Street. QE is actually more like trillions of dollars. A revolving door is frowned upon when one party benefits directly to the deteriment of competitors. Citadel can't really get special favors from the Fed as there's little the Fed could even do if they wanted to benefit Citadel over other hedge funds