Hedge Funds Exposure is over $28 Trillion - and the big banks played a big role in that
(Wall Street on Parade)
Why after last Monday hasn't the mainstream media reported this?
"According to a report at the U.S. Treasury’s Office of Financial Research (OFR), the Gross Notional Exposure at hedge funds has skyrocketed by 24.5 percent in the span of one year: from $22.946 trillion on March 31, 2023 to $28.579 trillion on March 31, 2024.
Gross Notional Exposure (GNE) is defined by OFR as “the sum of the absolute value of long and short exposures, including those on and off the balance sheet.”
The OFR was created under the Dodd-Frank financial reform legislation of 2010 to keep bank and market regulators informed of growing risks, in the hope of preventing another financial crisis like that of 2007-2010 from occurring.
Unfortunately, Wall Street’s lobbying, bullying and regulatory capture has exponentially outstripped the clout of the OFR....
The largest megabanks on Wall Street – which since the repeal of the Glass-Steagall Act in 1999 are also allowed to own taxpayer-backstopped, federally-insured, deposit-taking banks – are the major source of providing that leverage to hedge funds.
This hedge fund lending and servicing operation at the megabanks is given the benign title of “Prime Broker.”
.....There appears to be little to no guardrails or moral compass on Wall Street in its pursuit of profits. That will doom both it and the U.S. economy if federal regulators continue to stand down..."
https://t.co/E5QZGA5MRJ