Thanks to Refco

The Refco scandal has come at a bad time for those in the hedge fund industry hoping to fend off further regulation. Set aside the many unanswered questions arising from the revelation of a hidden loan from the US futures broker to former chief executive Phillip Bennett, who was arrested Wednesday. The one that should worry the industry and its allies most is the apparent involvement of a hedge fund in this imbroglio. Exactly what happened at Refco is still not clear – though everyone on Wall...