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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.
More from Ken Silverstein:
Perspective — October 23, 2013, 8:00 am
How pro-oil Louisiana politicians have shaped American environmental policy
Postcard — October 16, 2013, 8:00 am
A trip to one of the properties at issue in Louisiana’s oil-pollution lawsuits
Fleming awoke in the dark and his room felt loose, sloshing so badly he gripped the bed. From his window there was nothing but a hallway, and if he craned his neck, a blown lightbulb swung into view. The room pitched up and down and for a moment he thought he might be sick. The word “hallway” must have a nautical name. Why didn’t they supply a glossary for this cruise? Probably they had, in the welcome packet he’d failed to read. A glossary. A history of the boat, which would be referred to as a ship. Sunny biographies of the captain and crew, who had always dreamed of this life. Lobotomized histories of the islands they’d visit. Who else had sailed this way. Famous suckwads from the past, slicing through this very water on wooden longships.
A welcome packet, the literary genre most likely to succeed in the new millennium. Why not read about a community you don’t belong to, that doesn’t actually exist, a captain and crew who are, in reality, if that isn’t too much of a downer on your vacation, as indifferent to one another as any set of co-employees at an office or bank? Read doctored personal statements from underpaid crew members — because ocean life pays better than money! — who hate their lives but have been forced to buy into the mythology of working on a boat, separated now from loved ones and friends, growing lonelier by the second, even while they wait on you and follow your every order.
Number of people stopped and frisked by the NYPD in 2011 for “furtive movements”:
The faces of Lego people were growing angrier.
Four people were arrested for using a remote-controlled hexacopter to fly two pounds of tobacco to prisoners inside the yard at Calhoun State Prison in Georgia.
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Our congratulations to Alice Munro, winner of the 2013 Nobel Prize for Literature