# kaal:claim:2714974-031

**Claim.** 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.

**Type.** mechanism  **Support.** argued

**Holds when.**

- depends on banks' ongoing lending and counterparty relationships with the fund

**Source quote.**

> 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.

**From.** Kaal and Oesterle, *The History of Hedge Fund Regulation in the United States* (2016), INDIRECT HEDGE FUND REGULATION, page 25

**Cite as.** Kaal and Oesterle, The History of Hedge Fund Regulation in the United States (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2714974

**Verify.** sha256 of source PDF `7764601d3ed5bb056b58949e8411eff9dfb9855f143719062030c980c5fa801b` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Oesterle%20-%202016%20-%20The%20History%20of%20Hedge%20Fund%20Regulation%20in%20the%20United%20States.pdf

**Topics.** systemic-risk, defi, economics, private-funds

**Keywords.** indirect-regulation, bank-lending, market-discipline, hedge-funds

**Related claims.**

- extends: https://wulfkaal.github.io/claims/1806252-011
- extends: https://wulfkaal.github.io/claims/2470008-013
- supports: https://wulfkaal.github.io/claims/1806252-002
- supported_by: https://wulfkaal.github.io/claims/2998097-008

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