If you participate in the Treasury's plan to buy troubled bank assets with Treasury funding, TARP Oversight Panel chairman Elizabeth Warren suggests they should face unspecificed oversight. "If you want to take taxpayer dollars, you cannot conduct business as usual," said Warren. She implied that participating in this plan is basically receiving taxpayer dollars. CNBC tried to pin her down as to what this would mean, and she was very careful not to say anything specific, just to leave the door open.
Clearly, investing in the Treasury's PPIP in that context invites a lot of 'operational risk'. I don't know why a large hedge fund would risk such an entanglement.