What's next: 4 prophets on the credit crunch

"The more the taxpayer is on the line and the more systemic the risk is, the stronger the regulatory hand needs to be."
Richard Baker, Managed Funds Association

Back when he was a Louisiana state representative, Baker, who left the House in February to lobby for hedge funds, tried to push a bill asking for stricter regulations on Fannie and Freddie. Now that the companies need to get back on track, he wants the government to ease restrictions on the types of products that the lenders can sell, in hopes that they will become more profitable. "In essence, it's time to make them private companies," he says. According to Baker, a massive regulatory review for all sectors is around the corner.

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