Friday, April 13, 2007

Bernanke: Lay off Hedge Funds

The Chairman of the Federal Reserve Bank of the United States of America considers that further regulation of hedge funds is not in the interest of the public or beneficial to financial markets. Indeed, Ben Bernanke states that these financial institutions bestow benefits such as increased liquidity and improvements of risk sharing. His very correct and defensible proposal for the systemic risks that they face is that of prudence on the part of investors, their managers and counterparties.

Simply put, why fix it if it ain't broke?

No comments: