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 165 years of
Harper’s for only $45.99

United States Canada

CATEGORIES

THE CURRENT ISSUE

August 2015

In the Shadow of the Storm

= Subscribers only.
Sign in here.
Subscribe here.

Measure for Measure

= Subscribers only.
Sign in here.
Subscribe here.

The Trouble with Israel

= Subscribers only.
Sign in here.
Subscribe here.

A Camera on Every Cop

= Subscribers only.
Sign in here.
Subscribe here.

view Table Content

FEATURED ON HARPERS.ORG

Article
Part Neither, Part Both·

= Subscribers only.
Sign in here.
Subscribe here.

“Eight months pregnant I told an old woman sitting beside me on the bus that the egg that hatched my baby came from my wife’s ovaries. I didn’t know how the old woman would take it; one can never know. She was delighted: That’s like a fairy tale!”
Mother with Children, by Gustav Klimt © akg-images
Article
What Recovery?·

= Subscribers only.
Sign in here.
Subscribe here.

“Between 2007 and 2010, Albany’s poverty rate jumped 12 points, to a record high of 39.9 percent. More than two thirds of Albany’s 76,000 residents are black, and since 2010, their poverty rate has climbed even higher, to nearly 42 percent.”
Photograph by Will Steacy
Article
Rag Time·

= Subscribers only.
Sign in here.
Subscribe here.

From a May 23 commencement address delivered at Hofstra University. Doctorow died on Tuesday. He was 84.
“We are a deeply divided nation in danger of undergoing a profound change for the worse.”
Photograph by Giuseppe Giglia
Article
The Trouble with Israel·

= Subscribers only.
Sign in here.
Subscribe here.

“We think we are the only people in the world who live with threat, but we have to work with regional leaders who will work with us. Bibi is taking the country into unprecedented international isolation.”
Photograph by Adam Golfer
Post
Greece, Europe, and the United States·

= Subscribers only.
Sign in here.
Subscribe here.

“A progressive Europe—the Europe of sustainable growth and social cohesion—would be one thing. The gridlocked, reactionary, petty, and vicious Europe that actually exists is another. It cannot and should not last for very long.”

Photograph by Stefan Boness

Percentage of Americans who believe that the population of the United States exceeds one billion:

28

Scientists explained why breast milk does not turn breasts to bone.

A pit bull was shot in Milwaukee after being mistaken for a lion.

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

HARPER’S FINEST

Subways Are for Sleeping

By

“Shelby is waiting for something. He himself does not know what it is. When it comes he will either go back into the world from which he came, or sink out of sight in the morass of alcoholism or despair that has engulfed other vagrants.”

Subscribe Today