Interesting story in Dealbook about how large nonbank financial firms are arguing to the Financial Stability Oversight Committee (FSOC) that leverage should be the key consideration in determining which nonbank firms should be deemed "systemically important," and thus subject to increased regulation by the Fed. (Dodd-Frank requires the FSOC to determine whether nonbank financial firms should be subject to Fed supervision based on a list of factors in § 113(a)(2), the first of which is "the extent of the leverage of the company.")

I guess this makes sense: banks (and broker-dealers) are naturally the most highly leveraged financial institutions, so if the FSOC determines that leverage is the most important consideration, then almost every large nonbank financial firm could point to how much less leveraged they are than the banks. Obviously asset managers and private equity funds would love it if the FSOC focused on nonbank firms' leverage.

This is a particularly interesting argument for hedge funds though. As Dealbook rightly points out, hedge funds, despite their reputation, are in fact generally not very highly leveraged — most hedge funds have leverage ratios between 2 and 3. (Most hedge funds are still equity-focused funds, where leverage is much lower.) But the issue isn't whether most hedge funds are systemically important; the issue is whether any hedge funds are systemically important, and if so, how many. And there certainly are hedge funds that run with high enough leverage, and are large enough, to be considered "systemically important." Regulators seem to be focused on funds that could suffer particularly sharp reversals ("panic-inducing" reversals, if you will), so I would expect those big global macro funds to get a very close look. My hunch is that the FSOC will also look quite closely at the big quant funds (e.g., RenTech, D.E. Shaw) — because let's be honest, they're a complete mystery. And they also have complex trading relationships with the various dealer banks, which at least has the potential to make the meltdown scenario look exponentially scarier.

It's unlikely that the FSOC will adopt the kind of narrow focus on leverage that buyside seems to have in mind, but it's a good effort nonetheless. I'll have more to say about the criteria I think the FSOC should use soon.


Anonymous said...

Almost completely related to the post, has Facebook threatened legal action for the name Dealbook as they have for Teachbook and Lamebook? Or do they stay away from those that have lawyers?

Anonymous said...

Oops...rather almost completely unrelated to the bad!

WOW Gold said...

Practically completely related to the actual submit, provides Myspace vulnerable court action to the brand Dealbook because they have with regard to Teachbook along with Lamebook? Or even can they keep away from folks legal professionals?

Buy RS Gold
Runescape Gold

RS Gold said...

it is really an remarkable, stunning, simple and honest video clip of the strategy. Now i'm this type of supporter of one's work! I'd please take a chunk involving delicacy off of a woods every day.

WOW Gold
WOW Chespest Gold

Anonymous said...

it is an impressive, Cheap wow goldstunning, simple and easy and sincere video recording with the approach. I am just this kind of advocate of one's work! I would please have a amount concerning intracaciesBuy rs gold away from a timber every single day.

murs dask said...

yemek tarifleri
ekol hoca
android market
twitter aç

dte said...

I love you not for the things you would bring to me but to accept everything you could bring EQ2 Plat, he true love is not for showing, but I am sure that even if all other people abandon me, you will still be my side EQ2 Platinum, I love you not because of who you are, but because of who I am when I am with you EQ2 Gold

dte said...

The consequences of today are determined by the actions of the past scarlet blade gold. To change your future, alter your decisions today scarlet blade gold, Experience is a hard teacher because she gives the test first, the lesson afterwards scarlet blade gold, but it takes character to keep you there.

gw2 gold said...

It was reported that some WOW gaming advice websites contained malware. Vulnerable computers would catch virus through wow gold their web browser, while downloading a program that would give their account information away

buy FIFA 13 coins said...

most importantly, I don't ever let a video game get in the way of us. If she's having a bad day and needs my attention, then guess what?

Cahaya Mandiri said...

Great Post. I have not been visiting the site recently. Took a visit again and there were some great comments on the site. Excellent post. Keep up the good work.
tips cara agar cepat hamil l CARA BELAJAR BAHASA INGGRIS l the best acne treatment l how to lose weight fast easy
margahayuland l BISNIS ONLINE l tips cepat hamil l how to get rid of acne home remedies l
home remedies for acne l how to cure acne fast l
baju batik modern l toko sepatu online l grosir jam tangan online l
jual jam tangan l toko jam tangan murah peluang usaha online l is acne no more for you l how to get rid of acne naturally
how to clear acne l cure acne naturally
best natural remedies for acne l acne no more l tempat belajar bisnis online
peluang usaha rumahan l cara mendapatkan uang dari internet
makanan sehat agar cepat hamil l penyebab tidak bisa hamil lcara agar cepat hamil

Taruhan Bola said...

To create a such kind of article is really amazing,I daily read your blogs and give my announcement for that here this article is too great and so entertaining. Judi Bola


Their are no non bank banks except credit unions.

Anonymous said...

menghilangkan kutil di kemaluan | obat penis mengeluarkan nanah | kutil di vagina | menghilangkan kutil di kemaluan | obat kutil di kemaluan pria | obat kutil di alat kelamin pria | obat kutil kelamin wanita | obat untuk menghilangkan kutil di kemaluan | obat kutil di alat kelamin pria | obat kutil kelamin wanita | obat untuk menghilangkan kutil di kemaluan | obat kutil di alat kelamin pria | obat kutil kelamin wanita

Trần Duy Thuận said...

Trần Duy Thuận Blog đang cần nhận gia công tại nhà. Ai có cần người nhận gia công tại nhà tphcm liên hệ mình nhé. Truy cập vào đặt vé máy bay giá rẻ vietjet để có thêm kinh nghiệm khi đi máy bay nhé.

manhkha said...

Kênh thông tin mua bán nhà đất tại Việt Nam , nếu bạn muốn mua hay bán nhà đất thì chỉ cần vào đây , chúng tôi sẽ cho mọi người biết về tin của bạn, mua bán nhà đất, nhà đất hcm, nhà đất gò vấp, nhà đất thủ đức, nhà đất tân phú, nha dat quan 9 . Còn chần chờ gì nữa , hãy đăng tin mua bán nhà đất nhanh nhanh .

Thach Nguyen said...

Bạn đang thắc mắc chi phi thay da sinh hoc
Hay Lột da collagen là gì?
Đừng ngần ngại hãy liên hệ với shop qua 2 đường dẫn trên nhé

Khang Minh said...

Có làn da trắng là mong ước của mọi cô gái , sản phẩm thuoc uong trang da giúp trắng da toàn thân hiệu quả ngoài ra bạn cũng có thể sử dụng các loại loai kem chong nang tot nhat. Ngoài ra nếu bạn muốn làn da luôn tươi trẻ thì nên dùng my pham sakura nhat ban như kem duong da chong lao hoa sakura giúp làn da luôn trẻ đẹp xóa các nếp nhăn. Cách thuoc herba vixmen an toàn và hiệu quả bằng herba vixmen , vậy thuoc herba vixmen mua o dau , có an toàn không và mua ở đâu sẽ được cho biết sau đây. Sản phẩm giúp bà bầu và thai nhi như nature made prenatal sẽ bổ sung chất dinh dưỡng cho cả bà bầu và thai nhi.

jaring safety said...

Nice article, thanks for the information. It's very complete information. I will bookmark for next reference
jaring futsal | jaring golf | jaring pengaman proyek |
jaring pengaman bangunan | jaring pengaman gedung

Michael Syaukas said...

Nice Post, Thanks for your very useful information...

lionelmessi10 said...

obat kemaluan keluar nanah herpes kelamin penyakit kencing nanah atau gonore obat kencing nanah diapotek obat penyakit gonore di apotik obat alat kelamin keluar nanah atau kencing nanah kencing terasa perih dan keluar cairan nanah obat cairan nanah dari kemaluan mengapa kencing perih dan keluar nanah mengapa ujung kelamin keluar cairan nanah cara mengobati kutil di area vagina penis keluar cairan nanah dan kencing perih penyebab penis keluar nanah obat wasir herbal tanpa operasi penis keluar nanah kenapa kemaluan lelaki keluar nanah obat wasir herbal semarang obat ambeien alami obat ambeien tanpa operasi obat ambeien tanpa operasi dan efek samping obat wasir alami obat manjur kemaluan keluar nanah di apotik kenapa kecing perih dan bernanah obat kemaluan keluar nanah atau gonore

شات دردشة بنات مصر شات مصريه said...

شات بنات مصر
شات بنات مصر
شات مصرى
شات مصرى
شات مصري
بنات مصر

شات مصر
شات مصرية

شات مصرى
شات بنات مصر
شات مصرى
بنات مصر
شات مصرى
شات بنات
شات مصر
شات مصرية

شات مصرية
شات مصريه

شات بنات مصر

erwin herbal said...

I was confused to comment, if I exaggerated when I said it was a remarkable article. I was amazed by the contents and it would like to continue reading even if the eyes are tired. really good article anyway. may I share articles like this obat alergi kulit cara mengobati impotensi May I share articles, it may be useful to other people pengobatan alternatif hepatitis pengobatan alternatif penyakit jantung The article discusses health treatment. The next article also discusses the same thing obat gondongan The article discusses health treatment. The next article also discusses the same thing obat penyakit jantung jianxin capsule obat luka di kaki akibat diabetes these articles I created to share information that might be useful for everyone pengobatan alternatif penyakit stroke cara membuat tubuh langsing I'd love sharing goodness as with this article, hopefully it can benefit others.
erwin herbal

Jackie O'Brien said...

Excellent post. Thanks for sharing your insight!

- Jacyln from Modern Analytics, a company dedicated to predictive modeling in financial services. Learn more about predictive modeling at the Modern Analytics website.

Agen Bola Terpercaya said...

Very good work this is from you.Agen Bola I have really enjoyed reading this today. The information was really helpful for me. This is amazing stuff from you! Keep it goingAgen bola terpercaya

Harianto Santozz said...

Togel Online Singapore
Togel Online Hongkong
Bandar Togel Singapore
Bandar Togel
Togel Online Terpercaya
Bandar Togel Online Terpercaya
Togel Online
Agen Togel Online Terpercaya
Agen Togel Online

mistersipilis said...

Jual obat herbal de nature asli untuk berbagai penyakit kelamin dan sebagainya
Obat Wasir Herbal
Obat Wasir Herbal Mujarab
Obat Wasir Herbal Ampuh
Obat Wasir Herbal Pada Pria
Obat Wasir Herbal Di Apotik
Cara Mengobati Wasir Stadium 4
Cara Mengobati Wasir Stadium 4 Tanpa Operasi
Cara Mengatasi Wasir Stadium 4
Cara Penyembuhan Wasir Stadium 4
Cara Mengobati Ambeien Stadium 4 Secara Alami
Cara Pengobatan Wasir Stadium 4
Cara Pengobatan Ambeien Stadium 4
Cara Mengobati Wasir Stadium 3 Dan 4
Cara Mengobati Wasir Stadium 3
Cara Mengobati Wasir Stadium 3 Secara Alami
Obat Wasir Herbal Apotik
Obat Wasir Herbal Untuk Ibu Hamil
Obat Wasir Herbal Terdaftar Bpom
Obat Wasir Herbal Untuk Ibu Menyusui
Obat Wasir Herbal Bandung
Cara Mengobati Wasir Stadium 3 Dan 4
Cara Mengatasi Wasir Stadium 3
Cara Mengobati Ambeien Stadium 3 Tanpa Operasi
Cara Menyembuhkan Wasir Stadium 3
Cara Mengatasi Ambeien Stadium 3
Cara Alami Mengobati Wasir Stadium 3
Cara Mengobati Ambeien Stadium 3 Secara Alami
Obat Wasir Herbal Manjur
Obat Wasir Herbal Semarang
Obat Wasir Herbalife
Obat Wasir Herbal Jogja
Obat Herbal Wasir Berdarah
Obat Herbal Wasir Dalam
Obat Herbal Wasir Akut
Obat Herbal Wasir Stadium 4
Obat Herbal Wasir Terpercaya
Obat Herbal Wasir Stadium 3
Obat Herbal Wasir Internal
Obat Wasir Herbal Alami