Wednesday, March 4, 2009

A.I.G. Acted Like an Irresponsible Hedge Fund, Bernanke Says - NYTimes.com

“A.I.G. exploited a huge gap in the regulatory system,” Mr. Bernanke said. “There was no oversight of the financial products division. This was a hedge fund, basically, that was attached to a large and stable insurance company.” And this quasi-hedge fund, Mr. Bernanke went on, to nobody’s surprise, made irresponsible bets and took huge losses.
A.I.G. Acted Like an Irresponsible Hedge Fund, Bernanke Says - NYTimes.com

1 comment:

Hedge Fund Lawyer said...

We have seen that the financial system needed additional controls. Many of these controls will be implemented by Congress through legislation. For instance, hedge fund registration is likely in the Obama administration. Even though registration will be good for the health of the financial system, it will increase the costs for start up hedge fund managers.