6-7-05 CNBC's Maria Bartiromo Interviews Charles Gradante of Hennessee Group

6-7-05 Bloomberg - Charles Gradante, Managing Principal of the industry leading Hennessee Group hedge fund advisory firm and Registered Investment Advisor (www.HennesseeGroup.com) is shown on CNBC with Maria Bartiromo on 6-7-05. Gradante points to Alan Greenspan, Chairman of the Federal Reserve, in Greenspans statement that hedge funds bring liquidity and efficient pricing to the market. Richard Bove and Gradante debate leverage in the hedge fund industry. Gradante warns of the esoteric instruments that banks are creating for hedge funds to generate fee income. Credit default swaps (CDS), structural notes, collateralized debt obligations (CDOs).
Banks are holding huge amounts of risk on their balance sheets. The lesson Long Term Capitals collapse if for banks to apply current credit lending standards stated Gradante.

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• hedge funds
• cds
• credit default swaps
• investment banking
• bernard madoff
• stocks
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• shorts
• short selling
• warrants
• leverage
• fund managers
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