New York Times – Hedge funds and the rest of the so-called shadow banking system are almost certainly going to face more regulation. But governments should not try to supervise them directly; instead, it would be far more productive for governments to monitor how they borrow to leverage their investments.
The political momentum for regulating shadow banks is building in advance of a meeting in April in London of representatives of the Group of 20 economies. That much is clear from the European leaders’ meeting over the weekend.
