Bank Of England Raises Systemic Concerns About Hedge Funds

Sep 25 2013 | 12:16pm ET

A specter is once again haunting the hedge funds of England—the specter of systemic importance.

At its first meeting under new Bank of England Governor Mark Carney, the U.K. central bank's Financial Policy Committee set its sights on the hedge fund industry, calling it a potential source of instability.

The committee said it doesn't know enough about how problems at hedge funds could weigh on their counterparties and institutional investors, and that the BoE and Financial Conduct Authority had joined forces to collect more information about the industry and put together "a more complete assessment of risks to financial stability."

The statement is something of a volte-face for British regulators, which in the past have downplayed the risk the financial system posed by hedge funds.


In Depth

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...