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2 August 2012 Enterprising Investor Blog

Swiss National Bank — Central Bank or Hedge Fund?: James Saft | Reuters

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One of my favorite journalists makes the case that the Swiss central bank is a hedge fund with a small country appended to it. In the modern era of international finance, even supposedly neutral players, like central bankers, have hedge fund-like qualities. In the U.S. the too-big-to-fail banks with their proprietary trading desks are essentially depositer funded hedge funds. When that fails, then they are insured by taxpayers.