I do not think we can create a new regulator that will be able to outsmart Wall Street and prevent future financial failures.

The Fed needs to be reformed so it can get monetary policy right and not create future bubbles through easy money.

Your reports are stunning, to say the least.

What do you think caused the failure of Long-Term Capital Management in 1998? What do you think caused it?

To limit the potential harm that could be done by private investment firms to the system and counterparties, do you think it is better to place limits on the firms themselves or to limit the exposure of counterparties like banks to the…

Do you think the counterparties should be reimbursed dollar for dollar in case there is a systemic failure with one of the hedge funds or one of the other types of investment firms?

You are not answering my question.

Chairman Reed, Ranking Member Bunning, and Members of the Subcommittee.

I am also concerned about the potential for market manipulation and fraud.

But then you have to have someone who knows to ask the right questions and get the right information.

The fear I have is a group of hedge funds or investment advisers getting together, colluding, shorting individual stocks for their own purpose.