New York – Federal Reserve Chairman Ben S. Bernanke said that a “light regulatory touch” on hedge funds is justified because of the incentives that investorsand creditors have to monitor risks.
“Because hedge funds deal with highly sophisticated counterparties and investors, and because they have no claims on the federal safety net, the light regulatory touch seems largely justified,” Bernanke said in a speech to the New York University School of Law’s Global Economic Policy Forum. “Thus far, the market-based approach to the regulation of hedge funds seems to have worked well.”
