NewsWeek – On financial reform, it’s one week down, one week to go. Lawmakers are in the middle of hammering out differences between two Wall Street regulation bills, one passed by the House and one by the Senate, aiming to have a final bill over to President Obama before he attends the G-20 summit in Toronto this weekend. As they clamp down on consumer protections and proprietary trading, however, there’s one corner of the financial world with which they might want to use a light touch.
According to Sebastian Mallaby, author of More Money Than God: Hedge Funds and the Making of a New Elite, hedge funds are the best risk managers around, meaning as Congress squeezes out risky behaviors from the big financial conglomerates, we would all be best served letting small unregulated hedge funds pick them up.
