Regrettably, the creditors felt that, given the complexity of market bets woven into a bewildering array of financial contracts, working with the existing management would be far easier than starting from scratch. Some Questions for Policy Makers Without doubt, extensive study will be required to put the events of the past few weeks into proper perspective.
Lastly, supervisors will evaluate the case for developing more systematic data on core institutions’ global credit exposures to hedge funds. A fourth recommendation calls on counterparties and investors in hedge funds to demand and act upon appropriate information from hedge fund managers, while a fifth urges the hedge fund industry to review and enhance existing sound practice benchmarks for hedge fund managers.