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"They want risk controls, reduced leverage and more transparency," Mr. Reid said.
Yet after an election campaign in which Mr. Obama made this a top issue, Republicans have reduced leverage, many acknowledge.
Slides from the presentation announcing the cuts indicated the firm had reduced leverage, with total assets falling below $800 billion from $987 billion during the fiscal third quarter.
The firm also noted that it had shrunk its balance sheet by nearly a quarter and reduced leverage, further comforting investors.
The hedge fund reduced leverage across its funds to 17percentt at the end of February, from 23percentt at the end of June, to strengthen the balance sheet in difficult times.
Some chaebol have reduced leverage more by issuing new equity than by repaying debt; and this year, leverage has started rising again for three of the top four (see chart).
Similar(44)
Reducing leverage isn't enough.
Banks have been furiously reducing leverage.
They included a demand that British banks further reduce leverage.
But was reducing leverage the only fix that was needed?
Banks should hold less capital in good times and reduce leverage when losses loom.
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CEO of Professional Science Editing for Scientists @ prosciediting.com