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Kent Osband Comment On Regulatory Notice 22-08

Kent Osband
N/A

I am a PhD economist who has published three books on financial risk I also worked at Goldman Sachs and a major hedge fund as portfolio strategist and risk manager. We were very grateful to regulators for restricting retail access to the kind of levered and inverse investments that we used regularly to focus and limit our risks. However the simple truth-- which I will happy to publicly discuss with your experts--is that retail investors take far more risk by plowing all their savings into a single high-beta stock at a volatile time (which no regulation forbids) than by owning a mix of leveraged and inverse assets. All you're accomplishing is implementing a Door Nibor policy (reverse Robin Hood), which takes from the poorer to give to the richer.