[PEN-L:512] banks and hedge funds?

[DOUG ORR <DORR@xxxxxxxxxxxx>]

In today's SF Chronicle there is an article suggesting that BofA will lose
$100 M in the D.E. Shaw hedge fund.  I understand that banks that had made
loans to Long Term Capital (sic) Limited were at risk of losing money in
loan defaults, but the Chronicle article suggests that BofA is losing
money thru direct investment in the hedge fund.  While Glass/Steegul is
under attack, I was under the impression that bank purchases of stocks was
still illegal.  What is going on here?

Waiting for Doug's (or someone else's) answer,

Doug Orr
dorr@xxxxxxx