Obama vs. the hedgie

September 21, 2010

Here is a bit-o-goodness from my Reuters Breakingviews column on the Obama-CNBC town hall yesterday .

The Sept. 20 exchange between President Barack Obama and Anthony Scaramucci of SkyBridge Capital illustrates the severity of the rupture between the president and the financial community. … Scaramucci is a guy who was in on the ground floor of Hope and Change, Inc. He’s a former Harvard law school classmate of Obama’s who contributed early and often to Obama’s presidential campaign. …  But Scaramucci also gave the impression of a hedgie scorned, even though it’s debatable to what extent new financial regulations have “whacked” hedge funds. More funds must register with the Securities and Exchange Commission, they’re subject to greater state supervision and they may have to give more info to the SEC. Then again, limits on bank trading desks should allow hedge funds to compete more effectively.

What may really be bugging Scaramucci and his colleagues is that when Obama speaks about the Wall Street “fat cats” who almost toppled the economy, the condemnation is sweeping. Hedge funds didn’t need a bailout like the big banks, used far less leverage and are almost always small enough to fail. … Wall Street is never going to get Main Street’s sympathy. Better to talk softly and carry a big wallet. And that seems to be just what Scaramucci is doing. Filings show he’s only contributed to Republicans so far this year, including $5,000 to Free and Strong America. That’s the political action committee of potential 2012 Republican presidential candidate — and potential Obama challenger — Mitt Romney.

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