I think the article was related to the Bear Stearns collapse. Need to see if I can find it.

Edit - This isn't the article I saw, but it has some of the same points.

http://www.washingtonpost.com/wp-dyn/conte...8041500285.html

"The release of the guidelines comes at a time when a severe credit crisis has roiled financial markets with many large banks and investment houses being forced to declare billions of dollars in losses. Hedge funds have been caught up in the turmoil as investors have grown worried about the solvency of funds that invested heavily in securities backed by subprime mortgages, where delinquencies have hit record levels.

Hedge funds, which operate with little government supervision, cater to institutional investors and very wealthy individuals. However, millions of ordinary people have also become unwitting investors in the funds through their pension plans."