Monday, April 30, 2007
Too Much Debt?
Are more Long Term Capital Management collapses in the future? The Wall St. Journal calls it the "leverage binge" and reports that regulators are worried because Wall St. is lending lots of money to hedge funds without the controls that are required in extending credit to brokerage firms and other regulated entities. See WSJ, OUTER LIMITS As Funds Leverage Up, Fears of Reckoning Rise.
https://lawprofessors.typepad.com/securities/2007/04/too_much_debt.html