Monthly Archives: January 2017

Do Hedge Funds Threaten Financial Stability?

By | January 26, 2017

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 »

Killing the Volcker Rule

By | January 11, 2017

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 »