Maybe the big leverage windfall from the Treasury won’t be open solely to well-connected hedge funds. Blackrock says it intends to take investments from endowments, pension funds and even mutual funds. So theoretically you could get in in that action, just like the big shots.
And yet, ultimately, this doesn’t sound like a good thing. Sure it sounds nice — letting the public play — but if the mutual fund shares are priced at full value, and the public is paying typically exorbitant mutual fund fees, then where’s the big upside?
Exactly. Sounds like another way to enrich Blackrock without much in it for anyone else.