Report Claims Hedge Fund, PE Firms Could Pose Systemic Risk

``The report, which was prepared by the Financial Stability Oversight Council, said that a large exodus of hedge fund investors could be destabilizing, Bloomberg reported... Private equity firms might pose a systemic risk, according to the report, because of the amount of leverage they use, as well as their use of bridge loans, Bloomberg said. The private investment industry has argued that it was huge, highly regulated entities, like banks, that caused most of the problems during the economic crisis of 2008, rather than smaller asset classes like hedge funds and private equity firms. ''