# kaal:claim:1806252-034

**Claim.** Without the threat of systemic risk and without a clear delineation of the social externalities that hedge funds cause, the purpose of direct hedge fund regulation is unclear.

**Type.** condition  **Support.** argued

**Holds when.**

- hedge funds have fewer assets and less leverage than banks
- collapses such as Amaranth in 2006 and large redemptions did not cause systemic problems

**Source quote.**

> Without the threat of systemic risk and without a clear delineation of social externalities caused by hedge funds, the purpose of direct hedge fund regulation is unclear.

**From.** Kaal, *Hedge Fund Regulation Via Basel III* (2011), I. INTRODUCTION, page 7

**Cite as.** Kaal, Hedge Fund Regulation Via Basel III (2011). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1806252

**Verify.** sha256 of source PDF `3343ebfe05a925c3d1a75625c4b351ccff515c50819a48d155804daacf01429d` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202011%20-%20Hedge%20Fund%20Regulation%20Via%20Basel%20III.pdf

**Topics.** systemic-risk, risk-and-incentives, private-funds

**Keywords.** systemic-risk, direct-regulation, leverage, hedge-funds

**Related claims.**

- extended_by: https://wulfkaal.github.io/claims/3405660-001

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.