Banks are not hedge funds. There is a lot wrong with excessive risk taking by banks, that's why it's heavily regulated. Systemic risk is bad. But excessive ris

Banks are not hedge funds. There is a lot wrong with excessive risk taking by banks, that's why it's heavily regulated. Systemic risk is bad. But excessive risk taking by hedge funds might be _net_ good, since it reduces inefficiencies in the market by removing bad money managers and investors from the system.