Only senior reporters at HFN, which has apparently been taken this morning by a li'l April 1 prank, should be nodding "hell yes." Yesterday, at Hedge Funds Review:

In a move which has left Wall Street and Capitol Hill reeling, the US administration has announced the formation of a hedge fund with a $500 billion mandate to oversee disposal of and investment in bank toxic assets as well as some of the remaining trouble asset relief programme funding. The deal could also include the troubled Big Three carmakers.

Details of the new fund, thought to be using the pre-launch name of Tarpox Opportunities Fund, are sketchy. However, people close to the deal have suggested portfolio management will be handled by a consortium of some of the top hedge funds in the US, including those that recently testified before Congress.

Today, at HFN:

The White House is developing a hedge fund to manage $500 billion in toxic bank assets, Hedge Funds Review reported Wednesday.

The hedge fund would handle the disposal and investment of the rechristened "legacy" assets, according to the report.

[...]

A request for further comment put through the White House press office was not returned. Isaac Baker, the U.S. Treasury spokesman handling information related to TARP, did not return a message seeking further comment at presstime.