Shady CDS Deals Spark Pushback From Global Regulators

The video discusses credit default swaps (CDS) and their impact during the financial crisis. It highlights criticisms of banks and private equity firms for using CDS to profit, leading to regulatory crackdowns. Despite these efforts, regulators face challenges in effectively controlling CDS activities. The video also mentions specific cases of questionable trades and the complexities of implementing rules like the Volcker Rule. Hedge funds often exploit regulatory loopholes, making it difficult to enforce strict regulations.

What challenges do regulators face in objectively regulating hedge funds?

What is the significance of the Volcker rule in the context of hedge fund regulations?