Banks are uniquely positioned to discipline hedge fund behavior because their role as lenders, market makers, and product creators lets them use the threat of cutting off future lending as leverage over a fund.
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Because of their interaction with hedge funds, banks are uniquely positioned to use the threat of cutting off future lending to improve a hedge fund's behavior.
extendskaal:claim:1806252-011 Banks' lending practices and counterparty credit risk management can curtail hedge funds' excessive risk takin...
extendskaal:claim:2470008-013 The absence of financial market repercussions from the Amaranth failure suggests that indirect regulation of p...
supportskaal:claim:1806252-002 Because hedge funds play a large role in the credit derivatives market and that market recently failed, an inc...
supported_bykaal:claim:2998097-008 Fund managers are unlikely to escape bank based indirect supervision by terminating a lending relationship, be...
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