August 25, 2007 (LPAC)--As the financial system careens out of existence, due to 30 years of failed policies, daily news of yet another banker or equity or hedge fund or real estate concern meeting their demise populates the economic news. Today's additions include a Barclays banker and a Boston-based hedge fund.

The prestigious 300-year old Barclays bank of Lombard St. in London sacked its director Edward Cahill who ran the bank's European Collateralized Debt Obligation (CDO) business at the bank's investment banking arm, Barclays Capital. Technically, he "resigned" on Monday but two days later it was reported that two of the investment funds under his management had their ratings cut by Standard & Poors due to massive losses from investments in U.S. mortgaged back securities. Cahill and his team were the big promoters of SIV-Lites, versions of structured investment vehicles which invest in long term assets with cheaper short term debt.

The other victim today, Bloomberg reported, was James Pallotta's $8.5 billion Raptor fund. Its value fell 8% this year through Aug. 15 as a common hedging strategy it used -- betting against some stocks -- failed to protect it amid a global equities selloff. "Some of our core longs were simply crushed," Pallotta, who manages Raptor for Tudor Investment Corp., wrote in an Aug. 21 letter to investors. He added, "All bets are off in a recession or a climate characterized by fear of recession. It is now our view that a consumer recession is likely -- if not happening already."