/biz/ - Business & Finance

>>56045264
>Many of the underlying flaws seen in non-bank financial institutions (NBFI) during the COVID-19 pandemic in March 2020 that forced central banks to inject liquidity into markets were still largely in place, the FSB said in a report.
>"While insurance companies, pension funds and investment funds represent two-thirds of NBFI assets, more than 90% of on balance sheet financial leverage is in so-called other financial intermediaries (OFIs), such as broker-dealers, hedge funds, finance companies, holding companies and securitisation vehicles," the report said.
>Some hedge funds, especially in the United States, Britain and European Union, use complex strategies that may embed vulnerabilities that are difficult for counterparties and regulators to assess quickly or unwind promptly, the FSB said.
>"Within the hedge fund sector, there is a group of funds, typically pursuing macro and relative value strategies, with very high levels of synthetic leverage," it said.
>"One area to explore is whether prime brokers’ risk management of exposures to leveraged non-bank entities could be enhanced," it said.

lmao GME caught them with their pants down and they never closed