Washington Babylon — December 19, 2008, 9:43 am

Correction on Larry Summers/Managed Funds Association

I posted an item a few weeks ago about Obama’s top White House economics adviser, Lawrence Summers, and the Managed Funds Association (MFA), the leading lobbying organization for the hedge fund industry. I had noted that before taking his new job, Summers had resigned as a managing director of hedge fund D.E. Shaw & Co., which is a member of the MFA.

An official involved with the MFA called and asked me to correct and clarify a few points from the story, which I’m in late in getting to.

I wrote that the MFA “was founded last year and since then has spent about $3.5 million lobbying the federal government,” and that its priorities include blocking regulation of the hedge fund industry. The spending on lobbying is correct, but the MFA has been around a lot longer: it was established in 1991.

Furthermore, the MFA, the official told me, has not opposed all regulation on the industry or derivatives. The MFA did oppose an SEC proposal a few years ago that would have required hedge fund managers to register as investment advisors. But the official said that the Association has asked for more regulation of derivatives. (He said that D.E. Shaw, Summers’s old firm, is registered with the SEC and not all MFA members are opposed to requiring fund managers to register.)

Also, the official said my article suggested that Summers himself played a role at the MFA, when in fact he had no connection to the organization. My article didn’t state that but I can see how a reader could draw that conclusion.

I regret the errors or any misperceptions caused by the item. I do think, though, that the broader points of the story hold: The hedge fund industry has a good deal of political influence and it needs to be further regulated and subject to greater public scrutiny (as the current crisis makes clear). And that Summers’s political history, general economic ideas and business ties suggest that he’ll be friendly to the hedge fund industry.

Share
Single Page

More from Ken Silverstein:

From the November 2013 issue

Dirty South

The foul legacy of Louisiana oil

Perspective October 23, 2013, 8:00 am

On Brining and Dining

How pro-oil Louisiana politicians have shaped American environmental policy

Postcard October 16, 2013, 8:00 am

The Most Cajun Place on Earth

A trip to one of the properties at issue in Louisiana’s oil-pollution lawsuits 

Get access to 164 years of
Harper’s for only $39.99

United States Canada

CATEGORIES

THE CURRENT ISSUE

November 2014

Stop Hillary!

= Subscribers only.
Sign in here.
Subscribe here.

How the Islamic State was Won

= Subscribers only.
Sign in here.
Subscribe here.

Cage Wars

= Subscribers only.
Sign in here.
Subscribe here.

Everyday Grace

= Subscribers only.
Sign in here.
Subscribe here.

view Table Content

FEATURED ON HARPERS.ORG

Article
Stop Hillary!·

= Subscribers only.
Sign in here.
Subscribe here.

"What Hillary will deliver, then, is more of the same. And that shouldn’t surprise us."
Photograph by Joe Raedle
Article
Cage Wars·

= Subscribers only.
Sign in here.
Subscribe here.

"In the 1970s, “Chickens’ Lib” was a handful of women in flower-print dresses holding signs, but in the past decade farm hens have become almost a national preoccupation."
Photograph by Adam Dickerson/Big Dutchman USA, courtesy Vande Bunte Farms
Article
Paradise Lost·

= Subscribers only.
Sign in here.
Subscribe here.

"Suffering Sappho! Here we still are, marching right into yet another century with our glass ceilings, unequal pay, unresolved work and child-care balance, and still marrying, forever marrying, men."
Illustration by Anthony Lister
Article
Off the Land·

= Subscribers only.
Sign in here.
Subscribe here.

"Nearly half the reservation lives below the poverty line, with unemployment as high as 60 percent, little to no infrastructure, few entitlements, a safety net that never was, no industry to speak of, and a housing crisis that has been dire not for five years but since the reservation’s founding in 1855."
Illustration by Stan Fellows
Post
Introducing the November 2014 Issue·

= Subscribers only.
Sign in here.
Subscribe here.

Doug Henwood on stopping Hillary Clinton, fighters and potential recruits discuss the rise of the Islamic State, the inevitability of factory farming, and more

Cover photo by Reuters/Jonathan Ernst

Number of countries thought to possess chemical weapons:

14–16

Placebos are more effective if the drugs for which they stand in are said to be more expensive.

In Torrance, California, an African grey parrot named Nigel, who once spoke English with a British accent and had returned home after a four-year absence, began asking for someone named “Larry” and speaking Spanish.

Subscribe to the Weekly Review newsletter. Don’t worry, we won’t sell your email address!

HARPER’S FINEST

In Praise of Idleness

By

I hope that after reading the following pages the leaders of the Y. M. C. A. will start a campaign to induce good young men to do nothing. If so, I shall not have lived in vain.

Subscribe Today