With the fall 2008 economic crisis, word on the street and in congressional chambers placed a good share of the blame at the feet of hedge funds — specifically, short-selling practices by fund managers and forced deleveraging by lenders. These accusations prompted calls for greater transparency and heavier regulation of these huge multibillion dollar funds. However, without objective data, legislators could either under- or overregulate certain players in the market while missing opportunities to make substantive changes where they may be needed more. Before we create new regulations targeting hedge funds, said professor Gregory Brown, Sarah Graham Kenan Distinguished Scholar and finance professor at UNC’s Kenan-Flagler Business School, we need to know if short selling and deleveraging were part of Read More
Tag Archives: investment research
The true cost of TARP
09/20/2010 – 7:29 am
Contrary to popular belief, the TARP bailout money wasn’t a free gift to banks. And it wasn’t all at the taxpayers’ expense either. That’s according to new research from UNC Kenan Flagler’s Anil Shivdasani. Amid cries of “Where’s my bailout?” the Troubled Asset Relief Program (TARP), which infused cash into 707 American banks at the height of the financial crisis, has been painted by many as simply a big gift from taxpayers to banks. But Anil Shivdasani, Wachovia Distinguished Professor of Finance at UNC Kenan-Flagler, has studied the numbers and says that it’s much more complicated than that. His research found that the unhealthiest banks didn’t get the capital, and those that did get the cash had to pay a Read More