Epstein Secrets

of cascades following failure) or to limit their activities (to curtail the potential for cross-contamination within firms). The recently proposed Volcker rule in the United States, quarantining risky hedge fund, private equity and proprietary trading activity from other areas of banking business, is

also indicates a quite different calibration of such regulation. Prudential regulation has become increasingly risk-based with the advent of first Basel I and latterly Basel II. But the risk in question to which regulation was then calibrated has tended to be institution-specific rather than systemi

regulatory designation of and Moody ratings, the treatment of off-balance-sheet credit guarantees, and on and on and on. The thousand pages of the Volker rule alone can start a nice bonfire. If a crisis is a run, and we can remove or fix run-prone securities, none of these steps is either necessary 5

ns, or hedge fund fees. We don't need to micromanage over-the- counter versus exchange-traded derivatives, swap margins, position limits, the bloated Basel bank regulation mess, the definition of risk-weighted assets, the internal process and regulatory designation of and Moody ratings, the treatment

sor" or manage hedge funds and private equity funds, such as the AlphaKeys Fund, only if certain conditions are satisfied. Among other things, these Volcker Rule conditions generally prohibit banking entities (including UBS and its affiliates) from engaging in "covered transactions" and certain other tr

untry by country basis. Banks continue to hold 0531 billion of non-core real estate loans that they will need to sell ahead of the implementation of Basel III and other regulations. We believe the largest remaining loan exposure is in the UK, Spain, and Ireland. Blackstone expects BREP Europe V to inv