Wall Street Folly

Just one in 10 hedge fund managers expects to see the fees they charge investors fall in spite of recent underperformance that has seen income sharply reduced, according to a Credit Suisse survey.

The industry suffered its heaviest outflows ever in 2008-09 but hedge funds still balk at the idea of cutting the standard “two and 20” fee structure, 2 per cent of assets and 20 per cent of returns, that they charge clients, the poll found…..

It is less than 18 months since the collapse of Lehman Brothers, but Nomura believes it is reaping rewards from its swoop on some of the US bank’s global operations.

The Japanese investment bank, which acquired Lehman’s European and Asian operations , this month reported its third consecutive quarter of profits – after a record loss in 2008.

The former Lehman operations have contributed significantly to revenues and profits and provide substance to the Japanese group’s ambition to join the ranks of the global investment banks…..

Charles Rangel accepted Caribbean trips against House laws, Ethics Committee rules – NY Daily News

House Ways and Means Committee Chairman Charles Rangel broke House rules by accepting corporate-sponsored Caribbean junkets, an ethics probe has concluded.

The Harlem Democrat, a member of Congress since 1971, admitted Thursday night he’d been “admonished” by the House ethics committee, but called it “disturbing.”

“I don’t want to be critical of the committee, but common sense dictates that members of Congress should not be held responsible for what could be the wrongdoing or mistakes or errors of staff,” Rangel told reporters…..

Tags: Berkshire Hathaway, Charlie Rangel, Ethically challenged politicians, Hedge funds, Lehman Brothers, Nomura, Politics, Warren Buffett