K Street's new gig: lobbying government for hedge funds | WashingtonExaminer.com: "Here's a growing business model in the financial world: bet that a company’s stock will crash, then sic the federal government on the company.
Politically connected hedge-funder Bill Ackman has been open about this. He shorted the nutritional supplement company Herbalife in late 2012, blasting it publicly as a “pyramid scheme.” Now, after months of lobbying Congress and the executive branch, he's succeeding in sending the Federal Trade Commission after Herbalife.
Expect more of this lobbying-assisted investing as hedge funds and private equity firms lose their aversion to politics and dive more deeply into Washington."
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