Hedge Fund Manager Registration Under the Dodd-Frank Act
Wulf A. Kaal · 2012
=987558 (reviewing the restructuring and recapitalization of LTCM). 6. Hedge Funds and Systemic Risk in the Financial Markets: Hearing Before the H. Comm. on Fin. Servs., 110th Cong. 4 (2007) (statement of Rep. Spencer Bauchus); id. at 8 (statement of E. Gerald Corrigan, Managing Director, Goldman Sachs & Company); Jón Daníelsson & Jean-Pierre Zigrand, Regulating Hedge Funds, 10 FIN. STABILITY REV. 29, 30 (2007) (“Hedge funds do . . . contribute to systemic risk whereby the failure of a systemically important hedge fund has the potential to create sufficient uncertainty in the markets for liquidity to dry up and for trading to cease with potentially costly consequences.”); Tomas Garbaravicius & Frank Dierick, Hedge Funds and Their Implications for Financial Stability 27 (Eur. Cent. Bank Occasional Paper Series, Paper No. 34, 2005), available at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=752094 (“The near-collapse of LTCM . . . underscores how hedge fund activities can harm financial institutions and markets.”); Jim Geene, Defining Hedge Funds: Regulations and Strategies in Mature and Emerging Markets 12 (June 15, 2010) (unpublished manuscript), available at http://ssrn.com/abstract=1641592 (“After the fall of LTCM, it became clear that unregulated hedge funds come with risks. LTCM caused financial problems to investors and the whole financial system was in danger.”); Nicholas Chan et al., Systemic Risk and Hedge Funds, NAT’L BUREAU ECON. RES. (Mar. 2005), http://www.nber.org/ papers/w11200 (“[S]ince the collapse of Long Term Capital Management in 1998, it has become clear that hedge funds are also involved in systemic risk exposures. The hedge- fund industry has a symbiotic relationship with the banking sector, and many banks now operate proprietary trading units that are organized much like hedge funds. As a result, the risk exposures of the hedge fund industry may have a material impact on the banking sector, resulting in new sources of systemic risks.”). 7. See Geene, supra note 6, at 12; see also Loomis, supra note 2, at 100 (discussing previous efforts to regulate hedge funds); Ben S. Bernanke, Chairman, Fed. 4 EElleeccttrroonniicc ccooppyy aavvaaiillaabbllee aatt:: hhttttppss::////ssssrrnn..ccoomm//aabbssttrraacctt==22115500337777
Cite: Wulf A. Kaal, Hedge Fund Manager Registration Under the Dodd-Frank Act (2012). SSRN: https://ssrn.com/abstract=2150377. https://doi.org/10.2139/ssrn.2129528
PDF sha256: 0b58bb409cac7674d78515f5374096f9a349de3bbd1983c990e0edc85a635a09