Galleon shutters $3.7 billion hedge fund -- no government bailout required!


Galleon Holdings, the $3.7 billion hedge fund run by accused insider-trader Raj Rajaratnam (pictured), who is now free on $100 million bail, is shutting down. The big reason is that many of its investors -- college endowments such as Colgate University and state pension funds including the Virginia Retirement System, according to Reuters -- are not comfortable keeping their money with a firm whose CEO has been indicted.

Don't you just love it when the free market works? I realize that Wall Street does not have an entirely free market, because when it gets in trouble, the U.S. steps in with $23.7 trillion -- a nice return on Wall Street's $5 billion investment in Washington over the last decade. But in this case, the free market looks to be rapidly hoovering up the little mess left in Galleon's wake.