Reply #58: I read something about that -- and found that back in '04, Quayle

[Emit]

Met with then The SEC Chairman William Donaldson a month prior to Donaldson's vote on whether to open hedge funds to periodic inspections:

~snip~
Canary Scandal

Former U.S. Vice President Dan Quayle, an adviser to Cerberus, met in June with Donaldson to discuss fund regulation. Craig Whitney, executive vice president of Quayle & Associates, denied that Quayle was lobbying Donaldson to weaken the SEC's hedge fund plan.

Hedge fund executives also say the SEC should focus its resources on better protecting the 91 million U.S. holders of mutual funds. The SEC's move to increase regulation of the private investment pools has gained pace since New York Attorney General Eliot Spitzer alleged 10 months ago that ``illegal trading schemes'' enabled some hedge funds to buy mutual fund shares at prices not available to most investors.

Canary Capital Partners LLC and its managing principal, Edward Stern, agreed on Sept. 3 to return $30 million in profits and pay a $10 million fine. Since then, regulators have imposed more than $2.3 billion in sanctions against about a dozen companies including Bank of America Corp. and Alliance Capital Management Holding LP. ~snip~

http://quote.bloomberg.com/apps/news?pid=10000006&sid=afYb5XBe.P0A&refer=home