Hedge funds and systemic risk Dixon, Lloyd S. creator Clancy, Noreen. Kumar, Krishna B. RAND Center for Corporate Ethics and Governance Rand Corporation JSTOR (Organization) text bibliography Electronic books. cau 2012 monographic eng remote 1 online resource (xxx, 115 pages) : color illustrations. "Hedge funds are a dynamic part of the global financial system. Their managers engage in innovative investment strategies that can improve the performance of financial markets and facilitate the flow of capital from savers to users. Although hedge funds play a useful role in the financial system, there is concern that they can contribute to financial instability. The collapse of Long-Term Capital Management (LTCM) in 1998 raised awareness that hedge funds could be a source of risk to the entire financial system. Hedge funds also invested heavily in many of the financial instruments at the heart of the financial crisis of 2007-2008, and it is appropriate to ask whether they contributed to the crisis. This report explores the extent to which hedge funds create or contribute to systemic risk (that is, the risk of a major and rapid disruption in one or more of the core functions of the financial system caused by the initial failure of one or more financial firms or a segment of the financial system) and the role hedge funds played in the financial crisis, the consequences of the 1998 failure of LTCM, and whether and how the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 addresses the potential systemic risks posed by hedge funds."--Page 4 of cover. Introduction -- Background on the Hedge Fund Industry -- The Collapse of Long-Term Capital Management -- Hedge Funds and the Financial Crisis of 2007-2008 -- Potential Hedge Fund Threats to Financial Stability and Reforms to Address Them -- Conclusion -- Appendix: Regulatory Reforms That Address Potential Systemic Risks Posed by Hedge Funds. Lloyd Dixon, Noreen Clancy, Krishna B. Kumar. "RAND Corporation." Electronic resource. Includes bibliographical references (pages 107-115). The research described in this report was supported by a contribution by Christopher D. Petitt, principal of Blue Haystack, a financial research and consulting firm, and by the RAND Center for Corporate Ethics and Governance. n-us--- Global Financial Crisis (2008-2009) Hedge funds United States Financial risk United States Global Financial Crisis, 2008-2009 Financial crises United States Risk management Government policy United States Financial institutions United States Management BUSINESS & ECONOMICS Investments & Securities Mutual Funds Financial crises Financial institutions Management Financial risk Hedge funds Risk management Government policy United States 2008-2009 fast HG4930 .D59 2012 332.6327 Hedge funds and systemic risk Dixon, Lloyd S. Santa Monica, Calif. : RAND Corporation, 2012 (DLC) 2012948078 (OCoLC)809834660 Rand Corporation monograph series 9780833077868 0833077864 9780833077882 0833077880 9780833076847 0833076841 22573/ctt1gz7rx JSTOR http://proxy.library.tamu.edu/login?url=https://www.jstor.org/stable/10.7249/j.ctt1q60xr COO 100729 20260728172608.8 in00003909392 eng