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Few points:

1) The Volcker Rule is not in the Bill (House or Senate). This conceivably
would have helped our independent hedge funds because the banks would not
have been able to manage their own funds.

2) The bigger problem on the horizon for these guys is that there is
language in the Jobs Bill the House is slated to pass next week which would
tax carried interest as income not capital gains. The speculation is that
there will finally be support in the Senate this year for this language
where there hasn't been in the past. There is an exemption for carried
interest on invested capital, but carried interest from other investors will
be taxed as income (from 15% to approx. 37%).

3) Izzy may also be concerned with the attacks on High Frequency Trading. I
need to confirm, but I believe Ted put language into the bill which directs
the SEC to study HFT and come back to Congress with a plan to regulate it
better. It is not binding on the SEC in anyway, but there clearly will be
an effort to have the SEC regulate it more closely now.

On Fri, May 21, 2010 at 7:41 AM, <hbiden@rosemontseneca.com> wrote:

> Financial Reg Reform bill impact Third Point and Millenium.
> Sent on the Sprint® Now Network from my BlackBerry®


--
Eric D. Schwerin
Rosemont Seneca Partners
(202) 333-1880
eschwerin@rosemontseneca.co