# kaal:claim:2748096-015

**Claim.** Pre-crisis regulatory attention was misallocated: although Bernanke identified failure to manage counterparty risk as the primary cause for concern, the SEC and the Senate Banking Committee concentrated on hedge fund transparency instead.

**Type.** failure  **Support.** argued

**Holds when.**

- U.S. regulatory response between the 1998 LTCM failure and the 2007-2008 crisis

**Source quote.**

> The focus of both of these entities, however, centers more on the issue of hedge fund transparency than on counterparty risk.

**From.** Wulf A. Kaal, Timothy A. Krause, *Hedge Funds and Systemic Risk* (2016), Hedge Funds' Contributions to the Financial Crisis of 2007-2008, page 6

**Cite as.** Wulf A. Kaal, Timothy A. Krause, Hedge Funds and Systemic Risk (2016). SSRN: https://ssrn.com/abstract=2748096

**Verify.** sha256 of source PDF `8f30260f2c1db728b45c4f3b9b7c64358cf9d3217277bc3c63a910c32f87b508` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Krause%20-%202016%20-%20Hedge%20Funds%20and%20Systemic%20Risk.pdf

**Failure mode.** misdirected regulatory focus  (family: supervisory-capacity-gap)

**Topics.** risk-and-incentives, disclosure

**Keywords.** counterparty-risk, transparency, regulatory-focus, pre-crisis-regulation

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