MSNBC- Hedge funds and those doing business with them were on Monday warned by the US Treasury not to operate “under the false allusion” that systemic risk from their activities was not a “realpossibility” in spite of the increased sophistication of risk management.
The comments are the strongest sign yet of US policymakers’ concern that markets should not take undue comfort from the relative lack of fall-out from last year’s multi-billion dollar losses at hedge fund Amaranth.
Anthony Ryan, the Treasury’s assistant secretary for financial markets, said: “Some may posit that the increasing sophistication of risk management systems coupled with other developments and efforts has placed systemic risk on the endangered species list.
