Fortress Blasts ‘Parochial’ U.S. Government

Aug 7 2009 | 10:48am ET

Fortress Investment Group, which this week announced a narrowed quarterly loss, is none too happy with the U.S. government.

Two of the firm’s founders are blasting U.S. regulatory efforts. Peter Briger took aim at the federal government’s involvement in the Chrysler bankruptcy, saying that getting in the middle of creditor-debtor disputes doesn’t do anyone any good.

“My big fear is impairment in the rules,” he told the Financial Times. “We need to make sure the creditor-debtor process is clear.”

Briger also dismissed the U.S. response to the financial crisis as “parochial,” arguing that just bailing out banks is a short-term expedient.

Speaking of banks, Fortress co-founder and outgoing CEO Wesley Edens called on regulators to clarify the rules on private equity firms investing in banks. Edens is stepping down as CEO to focus on Fortress’ private equity business; he will be replaced by former Fannie Mae CEO Daniel Mudd.


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