The CEO of Magnetar is, naturally, a chap named Alec Litowitz. Rahm connection:
"But the sponsors of this toxic trade did bother to make sure they had a powerful friend. The head of the firm in question gave substantial amounts of money by political contribution standards to Rahm Emanuel’s PACs, and only his PACs, over the period when these transactions were in play.
The moving force behind a brilliant and devastating subprime short strategy was a heretofore unknown Chicago hedge fund, Magnetar, headed by Alec Litowitz, formerly of the hedge fund behemoth Citadel. Our studies indicate that Magnetar alone accounted for between 35% and 60% of demand for subprime mortgages in the year 2006."
Don't expect the SEC to come knocking on Litowitz' door for a while. On the other hand, when Obama needs a method to get the undermining Rahm out of his office . . .