The Fed and Treasury are now trying to figure out how they can help insurance companies avoid the same financial problems banks are having. Geez, banks and insurance companies. Two groups who have lobbied their way into legislation which empowers them to every business advantage possible. Two entities every American has had to bend to so that they may comply on loans, liability, and asset coverage. These two groups have had a license to steal and still screw it up. If they are going to give money to these folks, there is a great argument for wiring all the cash directly to the general public.
The mighty hedge funds have been smoked in this market. Citadel has taken pipe because it turns out they never were really very smart after all. They thought that if you simply accrued enough cash and rode the same mania trades as everyone else, great profits and sizable fees would result by the shear size of the mountain of money being managed. This transactional frenzy into illiquid voodoo doodoo was their real strategy, just like the banks and the insurance companies. As for Citadel's reputation for poaching the best and brightest traders, apparently they hired a bunch of smart guys who in the end were just clerks.
