Regulators are serious this time. They intend to put the brakes on the wild and risky speculative ways of Wall Street, from big banks to hedge funds – at least, that's what the press is widely reporting.
With its regulatory framework at stake, the industry is pulling together for a prolonged battle on Capitol Hill. Indeed, according to HedgeWeek, the Managed Funds Association is working hard to “sew up affiliations with at least a dozen of its smaller, lesser-known cousins.”
The big unknown, of course, is where regulations will go from here, if anywhere. Some believe this may prove to be a key period in history – an inflection point in the story arc of managed funds – when fortunes shifted direction forever. Or, markets may recover, interest may fade and lawmakers may find something else to target.
But the managed funds industry is taking no chances. And, either way, it may never be the same.
