Hedge Funds Gary Cohn
Hedge Funds Rebut Gary Cohn's Comments on Regulation
An executive at Goldman Sachs has issued a grave warning against new regulation on banks, arguing that such action could precipitate the next financial crisis by moving risky trading to hedge funds. Gary Cohn made the comments at Davos and has since been met with a firm rebuke from the hedge fund industry, with several managers weighing in on the comments.
Mr Cohn’s speech has since drawn criticism from some of the hedge fund industry’s most well-known names – including clients of the investment bank – which have interpreted his remarks as an attack on their activities.
“These statements are just false. Hedge funds are regulated. We didn’t cause the financial crisis. We didn’t take bail-out money,” Richard Baker, the president and chief executive of the Managed Funds Association, the industry’s main trade association, told the Financial Times.
“The most recent financial crisis was caused by institutions that didn’t know how to adequately manage risk and were overleveraged. And I worry that if there is another crisis, it will be because the same institutions have failed to learn from the mistakes of the past,” he added. Source
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