Could the failure of a single hedge fund, or group of hedge funds, threaten U.S. financial stability? It is an important question, and one that is difficult to answer. Take for instance the rapid decline of Long-Term Capital Management (LTCM) in 1998, which threatened to take down many of LTCM’s creditors and derivatives counterparties. To… Read More: Do Hedge Funds Threaten Financial Stability? »
Last week, Federal Reserve Governor Jerome Powell made news by suggesting that Congress rewrite the Volcker Rule. Governor Powell noted that: “What the current law and rule do is effectively force you to look into the mind and heart of every trader on every trade to see what the intent is.” Powell’s comments come on… Read More: Killing the Volcker Rule »
Courtesy of Holly Presley Donald Trump’s surprise election has led many to believe that regulatory relief is on the way for large banks. This optimism has led to a surge in bank stock prices, with the KBW bank index up over 20% since the election. While Treasury Secretary designee Steve Mnuchin has said the new… Read More: Banks’ Progress in Capital Stress Testing Confronts Uncertain Future »
