Cookies?
Library Header Image
LSE Research Online LSE Library Services

Highwaymen or heroes: should hedge funds be regulated?

Danielsson, Jon, Taylor, Ashley and Zigrand, Jean-Pierre (2004) Highwaymen or heroes: should hedge funds be regulated? Discussion paper: IAM Series No 004, 518. Financial Markets Group, London School of Economics and Political Science, London, UK.

[img]
Preview
PDF
Download (183Kb) | Preview

Abstract

The exponential growth of hedge funds, their role in financial crises in the 1990s, and examples of fraudulent behaviour have precipitated a heated debate over their regulatory status. The existing approaches of greater disclosure and activity restrictions appear too blunt to be effective and may stifle the benefits hedge funds can bring to the financial system. But, even the remote possibility of a systemic crisis weighs against no regulation. If reform is delayed until after a crisis it is likely to be politically influenced and sub-optimal. We argue that any reform should involve both the promotion of measures to reduce the likelihood of failure of a major hedge fund and crisis management procedures to address any fallout if this occurs.

Item Type: Monograph (Discussion Paper)
Official URL: http://fmg.lse.ac.uk
Additional Information: © 2004 The Authors
Library of Congress subject classification: H Social Sciences > HG Finance
H Social Sciences > HB Economic Theory
Sets: Research centres and groups > Financial Markets Group (FMG)
Collections > Economists Online
Collections > LSE Financial Markets Group (FMG) Working Papers
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Identification Number: 518
Date Deposited: 06 Aug 2009 15:49
URL: http://eprints.lse.ac.uk/24782/

Actions (login required)

Record administration - authorised staff only Record administration - authorised staff only