Amit Kumar

Geithner Regulates: After the Carrot, A Stick for Banks

Regulators having been bouncing the idea of system regulator for TBTF entities since LTCM collapse. Today, Jim Chanos said on bloomberg that hedge funds and non-banking financial institutions have been bracing for such a regulation since the current credit crisis began. Most large hedge funds and private equity firms over $2b are already registered with SEC. The question is not as much about capability as about political will and execution. For multinational institutions, winding down an entity global could pose serious cross-border political hurdles.