United Capital CEO Duran: We could see another LTCM
By Chris Clair
Wednesday, July 09, 2014
United Capital's Joe Duran says that, while bank balance sheets look better than they did during the financial crisis, nothing has been done to regulate the $2 trillion-plus hedge fund industry. "The banks are not going to be the problem. But the off-balance sheet investments that these hedge funds have – trillions of dollars – they aren't being regulated, they are not looking and saying 'What is...' like another Long-Term Capital – could it happen? Absolutely. Who knows which mega-large hedge fund is investing in debt with a lot of leverage that is not regulated, not even really reporting what their positions are."
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