Leases to Hedge Funds Raise Questions

They are known as “hedge fund hotels”: Offices that investment banks lease out to upstart hedge-fund traders, usually in hopes that the traders-in-residence will become big clients. As The New York Times’s Jenny Anderson reports, they often come with luxurious amenities, such as receptionists, espresso machines and consultants to help manage their information systems. But, Ms. Anderson wrties, they are also raising questions. William F. Galvin, the Massachusetts secretary of state, has subpoenaed UBS, the leader in this business, and is examining other banks with hedge fund hotels in Boston to determine how they are charging for their services.