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Originally posted by marg6043
Then we have GM they are now at the lowest since 1933, more bad news for the markets.
SAN FRANCISCO (MarketWatch) -- Mariner Investment Group, a big Harrison, N.Y.-based hedge fund firm, has raised a so-called gate this week on one of its funds to limit redemptions, becoming the latest firm in the industry to lock up nervous investors.
The Mariner Opportunities Fund, LP, which focuses on distressed debt and special situations, allows investors to withdraw money at the end of each quarter.
Redemptions for March 31 have been so large that the fund doesn't have enough cash to meet those requests without selling assets or borrowing money, the firm said in a letter to investors.
"It is imprudent (and unduly burdensome on remaining investors) to access credit facilities or sell assets at fire-sale prices in order to raise cash to meet those redemptions," Mariner principals Mark Weissman and Adam Cohen wrote in the letter, a copy of which was obtained by MarketWatch on Friday.
Mariner is putting up a gate that will limit total redemptions to 10% of the net asset value of the Mariner Opportunities Fund at the end of March.
WASHINGTON (MarketWatch) -- The current government approach to insolvent banks is "ad hoc" and isn't addressing the underlying problems, Thomas Hoenig, the president of the Kansas City Federal Reserve Bank, said Friday.
"We ... are drifting into a situation where institutions are being nationalized piecemeal with no resolution of the crisis," he remarked in a speech in Omaha, Neb.
The architects of the government response -- primarily Fed Chairman Ben Bernanke, former Treasury Secretary Henry Paulson and his successor, Timothy Geithner -- have argued that because there were no rules to take over weak, large bank-holding companies, they have been forced to play a bad hand and keep the institutions operating and pushing in government money to strengthen them.
But as the cost of this approach keeps expanding well above the initial $700 billion price tag, there is a growing sense that good money is being thrown after bad. The fact that the government deals with Citigroup Inc. and American International Group Inc. have been rewritten has added to uneasiness that the rescue plan in on the wrong track.
The takeovers of WaMu, Wachovia, Countrywide and Merrill Lynch were "hasty," according to Hoenig. He called for the Obama administration to declare banks insolvent and use its power to take over the failing institution and continue operations under new management.
This would be "temporary" and has precedent in history, he said.
Worries about "systemic" intertwining of banks because of complex derivative products should not be an excuse for inaction, Hoenig added.
In essence, Hoenig urged the government to scrap any notion that an institution is too big to fail. "If institutions -- no matter what their size -- have lost market confidence and can't survive on their own, we must be willing to write down their losses, bring in capable management, sell off and reorganize misaligned activities and businesses and begin the process of restoring them to private ownership.
"In fact, for failed institutions that have proven to be too big or too complex to manage well, steps must be take to break up their operations and sell them off in more manageable pieces," he said.