Comments on: Lehman Collateral Damage: Some Hedge Funds Have Assets Frozen http://www.nakedcapitalism.com/2008/09/lehman-collateral-damage-some-hedge.html Mon, 23 Nov 2009 09:23:14 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Ginger Yellow http://www.nakedcapitalism.com/2008/09/lehman-collateral-damage-some-hedge.html#comment-15770 Ginger Yellow Wed, 17 Sep 2008 21:08:00 +0000 http://www.nakedcapitalism.com/2008/09/lehman-collateral-damage-some-hedge-funds-have-assets-frozen/#comment-15770 Yeah, I'm not too up on the intricacies of hedge funds and prime brokerage (securitisation is my field, for my sins). I just thought it might be relevant. Yeah, I’m not too up on the intricacies of hedge funds and prime brokerage (securitisation is my field, for my sins). I just thought it might be relevant.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/lehman-collateral-damage-some-hedge.html#comment-15742 Anonymous Wed, 17 Sep 2008 17:37:00 +0000 http://www.nakedcapitalism.com/2008/09/lehman-collateral-damage-some-hedge-funds-have-assets-frozen/#comment-15742 Ginger Yellow,<br/><br/>it sounds like you are not aware of the concept of "Segregated account" under which the hedge funds operates.<br/><br/><br/>thanks, anyway for the info Ginger Yellow,

it sounds like you are not aware of the concept of “Segregated account” under which the hedge funds operates.

thanks, anyway for the info

]]> By: Ginger Yellow http://www.nakedcapitalism.com/2008/09/lehman-collateral-damage-some-hedge.html#comment-15719 Ginger Yellow Wed, 17 Sep 2008 15:57:00 +0000 http://www.nakedcapitalism.com/2008/09/lehman-collateral-damage-some-hedge-funds-have-assets-frozen/#comment-15719 On a perhaps related note, the administrators of Lehman's UK (ie European) arm just held a webcast. They said (roughly, among other things): "Lehman significant leverage to certain clients to acquire positions. We expect to liquidiate those positions to realise cash for the estate. We don't yet know if there will be any residual cash for the clients." On a perhaps related note, the administrators of Lehman’s UK (ie European) arm just held a webcast. They said (roughly, among other things): “Lehman significant leverage to certain clients to acquire positions. We expect to liquidiate those positions to realise cash for the estate. We don’t yet know if there will be any residual cash for the clients.”

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/lehman-collateral-damage-some-hedge.html#comment-15715 Anonymous Wed, 17 Sep 2008 15:50:00 +0000 http://www.nakedcapitalism.com/2008/09/lehman-collateral-damage-some-hedge-funds-have-assets-frozen/#comment-15715 Welcome to the predators bawl. Welcome to the predators bawl.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/lehman-collateral-damage-some-hedge.html#comment-15710 Anonymous Wed, 17 Sep 2008 15:30:00 +0000 http://www.nakedcapitalism.com/2008/09/lehman-collateral-damage-some-hedge-funds-have-assets-frozen/#comment-15710 "...hedge funds should<br/>be wiped off the face of the earth. They were a sophisticated scam to<br/>begin with..."<br/><br/>no comment<br/><br/>Beedge,<br/><br/>1. "Hedge funds add no real value to an economy" ...this is a matter of opinion;<br/><br/>2. "We need an economic system that rewards real factors of production", you are right, but is a political/regulatory issue, nothing to do with hedge fund managers;<br/><br/>3. "Obscene bonuses for no real productive ...". So why institutional and other type of investors keep investing in HFs? Out of what do you think bonuses are paid? “…hedge funds should
be wiped off the face of the earth. They were a sophisticated scam to
begin with…”

no comment

Beedge,

1. “Hedge funds add no real value to an economy” …this is a matter of opinion;

2. “We need an economic system that rewards real factors of production”, you are right, but is a political/regulatory issue, nothing to do with hedge fund managers;

3. “Obscene bonuses for no real productive …”. So why institutional and other type of investors keep investing in HFs? Out of what do you think bonuses are paid?

]]> By: Beedge http://www.nakedcapitalism.com/2008/09/lehman-collateral-damage-some-hedge.html#comment-15701 Beedge Wed, 17 Sep 2008 15:02:00 +0000 http://www.nakedcapitalism.com/2008/09/lehman-collateral-damage-some-hedge-funds-have-assets-frozen/#comment-15701 Hedge funds add no real value to an economy - they don't add real productivity - they just offer a way for the rich to leech further off the real factors of production.<br/><br/>Remove productive industries and the financial industry is worthless. <br/><br/>We need an economic system that rewards real factors of production, not a means to steal decades off future effort from the ordinary man and stuff it into the pockets of investment bankers and hedge fund managers. Obscene bonuses for no real productive work are exactly that.<br/><br/>A return to a system of barter might not be such a bad idea. <br/><br/>But certainly two sided speculative derivatives trading should be outlawed and all derivatives trading ought to be pinned on one side to a party actively trying to minimise industrial risk. Hedge funds add no real value to an economy – they don’t add real productivity – they just offer a way for the rich to leech further off the real factors of production.

Remove productive industries and the financial industry is worthless.

We need an economic system that rewards real factors of production, not a means to steal decades off future effort from the ordinary man and stuff it into the pockets of investment bankers and hedge fund managers. Obscene bonuses for no real productive work are exactly that.

A return to a system of barter might not be such a bad idea.

But certainly two sided speculative derivatives trading should be outlawed and all derivatives trading ought to be pinned on one side to a party actively trying to minimise industrial risk.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/lehman-collateral-damage-some-hedge.html#comment-15700 Anonymous Wed, 17 Sep 2008 14:59:00 +0000 http://www.nakedcapitalism.com/2008/09/lehman-collateral-damage-some-hedge-funds-have-assets-frozen/#comment-15700 This is the financials margin call. When an investor makes a bad bet<br/>and gets a margin call, the hedge funds have absolutely no mercy. They<br/>have no problem wiping you out completely. Now it is their turn.<br/>Unfortunately, the government bails some of them out - AIG, and others,<br/>Merrill, find a sugar daddy. Investment banks and hedge funds should<br/>be wiped off the face of the earth. They were a sophisticated scam to<br/>begin with. This is only justice. As you would tell your investors who couldn't make a margin call, "Nothing personal, this is just business". Tragically, it is the individual<br/>investor and the public at large who are once again shown no mercy,<br/>by the government. This is the financials margin call. When an investor makes a bad bet
and gets a margin call, the hedge funds have absolutely no mercy. They
have no problem wiping you out completely. Now it is their turn.
Unfortunately, the government bails some of them out – AIG, and others,
Merrill, find a sugar daddy. Investment banks and hedge funds should
be wiped off the face of the earth. They were a sophisticated scam to
begin with. This is only justice. As you would tell your investors who couldn’t make a margin call, “Nothing personal, this is just business”. Tragically, it is the individual
investor and the public at large who are once again shown no mercy,
by the government.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/lehman-collateral-damage-some-hedge.html#comment-15699 Anonymous Wed, 17 Sep 2008 14:53:00 +0000 http://www.nakedcapitalism.com/2008/09/lehman-collateral-damage-some-hedge-funds-have-assets-frozen/#comment-15699 Let me answer:<br/><br/>1. On BofA and MER: the issue here is why suddenly BofA shifted from LEH to MER. Has it got something to do with the previous acquisition, i.e. Countrywide, sponsored by the government? I fully share the view that the Fed goal is stability, but it does question me the sudden change and the criteria followed on the choice made by BofA. Hence, why MER instead of LEH? <br/><br/>2. You are right, I’ve studied Latin and Greek. Regarding the “attacks” you just have to follow the tags/topics “Hedge funds”, read the other posts and appreciate the negative connotation that is systematically given to hedge fund managers. Let me answer:

1. On BofA and MER: the issue here is why suddenly BofA shifted from LEH to MER. Has it got something to do with the previous acquisition, i.e. Countrywide, sponsored by the government? I fully share the view that the Fed goal is stability, but it does question me the sudden change and the criteria followed on the choice made by BofA. Hence, why MER instead of LEH?

2. You are right, I’ve studied Latin and Greek. Regarding the “attacks” you just have to follow the tags/topics “Hedge funds”, read the other posts and appreciate the negative connotation that is systematically given to hedge fund managers.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/lehman-collateral-damage-some-hedge.html#comment-15695 Anonymous Wed, 17 Sep 2008 14:24:00 +0000 http://www.nakedcapitalism.com/2008/09/lehman-collateral-damage-some-hedge-funds-have-assets-frozen/#comment-15695 Peter,<br/><br/>let me ask you: is it buying a house when you can't afford it or using HEW to buy a car or selling mortgages to people that don't understand the contract clauses or keeping the rates at 1% for 1 year the savviest behavior ?<br/>Definitely not. Is hybris, ego.<br/><br/>Has it got something to do with hedge funds? Definitely not, too.<br/><br/>Hence, don't mix up subjects and be more respectful. Peter,

let me ask you: is it buying a house when you can’t afford it or using HEW to buy a car or selling mortgages to people that don’t understand the contract clauses or keeping the rates at 1% for 1 year the savviest behavior ?
Definitely not. Is hybris, ego.

Has it got something to do with hedge funds? Definitely not, too.

Hence, don’t mix up subjects and be more respectful.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/lehman-collateral-damage-some-hedge.html#comment-15693 Anonymous Wed, 17 Sep 2008 14:14:00 +0000 http://www.nakedcapitalism.com/2008/09/lehman-collateral-damage-some-hedge-funds-have-assets-frozen/#comment-15693 since this is a government bail-out, will this go to the congress for approval? and if so, can we see the books please? were they cooked? and why give an outgoing CEO 47 million dollars? will a government owned AIG function as a government owned company? and how will it function?<br/><br/>yours truly,<br/>a student trying to understand since this is a government bail-out, will this go to the congress for approval? and if so, can we see the books please? were they cooked? and why give an outgoing CEO 47 million dollars? will a government owned AIG function as a government owned company? and how will it function?

yours truly,
a student trying to understand

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