Hedge Fund Chief Fingers Banks as Bad Guys

Stanley Fink, head of hedge fund giant Man Group, is coming out swinging against the industry's detractors--pointing the finger back at the big Wall Street firms. "Most of the conflicts of interest start with the investment banks," says Fink. "They are traders in equity and debt markets with advisory businesses on top. That means there is more scope for abuse." Dems fightin' words! Top of the conflict list: Banks' practice of calling other institutions, including hedge funds, before new share and bond issues to help them "test the market"--which substantially reduces the risk they end up taking on. "When you realise that [the banks] are quasi-hedge funds with advisory businesses attached and their people are highly incentivised, it's hard for the businesses to be free of taints." The dude's got a point. HF Boss Defends "Ethical" Industry [Daily Telegraph]

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