Hedge Funds Safer than Investment Banks? #
September 15th, 2008 | In Worth Considering
Tyler Cowen points to an interesting argument: while everyone spent last year wringing their hands over the risks posed by unregulated hedge fund, it’s actually been big investment banks that are flailing and failing in the current market. A possibly takeaway:
Hedge funds might not have had all that many rules governing their behavior but their incentive pay structure seems to have regulated their risk far better.