I laughed for a good two minutes when I read that. More commentary, albeit with varying degrees of sympathy for the investor class, here and here. I like that the "non-TARP lenders" (distressed HFs) are realizing that the syndication agent for the bank debt that they bought owes the government billions, and is therefore unlikely to fuck with them.
Who the fuck do you think you're dealing with? We'll have the IRS audit your fund. Every one of your employees. Your investors. Then we will have the Securities and Exchange Commission rip through your books looking for anything and everything and nothing we find to destroy you with.
I have to say, I'm very impressed with the Obama administration thus far in their ability to lock down this particular element of the economic crisis.
If I were a potential hedge fund investor, an important question that I would be asking all funds in the course of due diligence would be "Do you currently and would you ever invest in positions that are substantially adverse to the US government, such as in failed banks or auto manufacturers?" Hopefully there won't be too many more such situations, but as an investor, you probably want to stay the hell away.
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