Beyond buying troubled assets from banks, Mr. Bernanke said, another option is to provide asset guarantees under which the government would absorb part of the banks' losses in exchange for warrants or other forms of compensation.
But last year, New Mexico governor Susana Martinez signed a bill into law that made the practice, called civil asset forfeiture – under which police forces can confiscate and resell personal property based only on suspicion of its involvement in a crime, whether the owner was involved or not – illegal in New Mexico.
Another is to provide asset guarantees, under which the government would agree to absorb, presumably in exchange for warrants or some other form of compensation, part of the prospective losses on specified portfolios of troubled assets held by banks.
But two blocks from Leblon, one of the city's best beaches, is the headquarters of Gávea Investimentos, a Brazilian fund manager with $7 billion in assets under management, which makes money by looking over the horizon.The firm runs a respected "macro" hedge fund, which bets on global market trends.
Moreover, the firms earn fees from assets under management, which have also fallen.
Asked whether BlackRock executives would celebrate the company reaching $5 trillion in assets under management, which could happen soon if markets keep rallying, Mr. Fink responded swiftly.
More than half of SAC's assets under management, which stood at $15 billion as of mid-January, belong to Mr. Cohen and his employees.
They argue that good distribution means more assets under management, which in turn means economies of scale for fund shareholders.As the SEC pointed out, though, fees have risen at the same time as assets under management have grown.
The firm said the increase was a result of growth in long-term assets under management, which reflected the benefit of both new business and market appreciation of assets over the last year.
What the Labor Department doesn't give you is an average expense ratio — the average percentage charged by funds annually for assets under management — which if exceeded could move you to approach your employer to lower costs.
But while it is best known for leveraged buyouts, K.K.R. has steadily expanded into new businesses in part to help bolster assets under management, which now stand at $90.2 billion.
