The focus on the regulation of hedge funds at yesterday’s G20 meeting in London was odd. They had nothing to do with this financial crisis (despite legitimate concerns about their leverage) and are already being regulated in the world’s major jurisdictions.
To the untrained eye, the suggestion has been that hedge funds are not regulated at all. Even worse, that hedge funds were a major cause of the financial crisis. This was simply not the case.
It would have been much more useful for the G20 to publish strong proposals to address, for...