Mutual funds and sweetheart deals

By Megan McArdle
A securities lawyer of my acquaintance notes two things regarding public participation in the exciting investment opportunity Timothy Geithner is offering

  1. The Treasury white paper makes it clear that they want mutual funds to participate
  2. Mutual funds are only allowed to lever up to 1/3 of their assets, which is going to make the deal substantially less tempting than for less regulated entities.

This article available online at:

http://www.theatlantic.com/business/archive/2009/03/mutual-funds-and-sweetheart-deals/4884/