The World’s Largest Hedge Fund

by Marilou Long on March 30, 2009

in Credit Crisis

It was disconcerting to see the headline in the Financial Times this morning, “White House ousts GM chief”.  Rick Wagoner had to fall on his sword this weekend in order for GM to continue to receive government aid during restructuring negotiations.  It’s very difficult to negotiate terms when you’re out of cash and need capital.  We’re used to seeing headlines when it’s a large hedge fund or private equity firm bringing down the hammer on a struggling firm.

Whether we like it or not, “Uncle Sam’s Massive Hedge Fund” is currently in charge of negotiations.

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