Questions_on_Reading_by_Andrew_W._Lo - Questions on Reading...

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Questions on Reading by A. W. Lo (Hedge Funds, Systemic Risk, and the Financial Crisis of 2007-08): 1. What’s the main theme of this article? 2. What’s shadow banking? 3. What does he propose to do before trying to manage the risks of the financial crises? 4. What does he propose to deal with the inefficiencies of the GAAP accounting system? 5. What does he propose to deal with the complexities of the financial innovations? 6. What other motives does he mention for regulation? 7. What is the importance of the Glass-Steagall Act of 1933 and the repeal of some provisions of it in 1999? 8. What characteristics should be captured by a systemic risk measure according to the author? 9. Do you agree that connectedness can increase risk? What can be an advantage for a company which is connected to others? 10. What other warning indicators does he mention for systemic risk? 11. What does the author propose that hedge funds with more than $1 billion in exposures do in a regulatory sense? 12. Why should we be concerned about the fortunes of private partnerships or wealthy investors according to
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This note was uploaded on 10/16/2011 for the course FIN 353 taught by Professor Cobus during the Spring '08 term at S.F. State.

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