[QUOTE=Tucker134;2804540]Agreed...except alot of the firms you mentioned did have exposure, through internal hedge funds at the bank. I cant tell you how many "prop desks", or "arb" desks existed at these banks...they were put together to try to make $$ the same way a hedge fund would, only the profits would go directly to the bank...so would the losses- that's what precipitaded Bear Stearns fall- the June '07 liquidation of their internal hedge funds, AKA "BSAM" (Bear Stearns Asset Mgmt)...man has this been one huge mess.[/QUOTE]
Hedge funds are another category that is in dire need of more strict oversight. LTCM nearly took down our entire economy in 1998 by itself. More than 10 years later these market-moving behemoths are still effectively unregulated.