The New York Times, November 30, 2006

In October, a month after the Amaranth hedge fund lost $6.6 billion – the most ever by a hedge fund – Henry Paulson Jr., the Treasury secretary, spoke with Bloomberg News about the importance of "transparency" at hedge funds and "liquidity" in the system. His remarks were interpreted at the time as a warning, perhaps even a harbinger of more oversight.

In what was billed as a major economic address last week, Paulson devoted less than one-tenth of his speech to hedge funds, leaving the impression that he is basically satisfied with the regulatory status quo.

No one wants the Treasury secretary to be an alarmist. But other officials, notably at the Federal Reserve Bank of New York and the Securities and Exchange Commission, have gone further than merely acknowledging "potential risks" and pledging more "deliberations," as Paulson did in his speech. Without pushing any panic buttons, they have broached the need for more collateral and better risk controls at banks that deal with hedge funds and greater oversight of hedge funds that solicit investments from pension plans. Currently, 9,000 hedge funds manage $1.3 trillion of investors' money and control trillions of dollars more through their use of loans and derivative financial tools. They invest in all major sectors and operate through banks and securities firms, affecting the economy as a whole. And yet, they remain largely beyond the reach of federal overseers, a holdover from the days when they were much less ubiquitous. In 1990, only a handful of hedge funds existed, and altogether they managed just $39 billion.

As hedge funds become more numerous and complex, it is simply not feasible for banks to stay on top of their activities. And then there's the matter of responsibility. It's not a banker's job to protect the public interest. It's the job of regulators.

Paulson was right when he noted in his speech that the need for regulation must be balanced against the benefits of flexibility. But the challenge of striking a balance is beginning to sound like an excuse for delay. It's time to move the discussion beyond whether hedge funds require more regulation to how they should be regulated.

Letters to the editor, like op-eds, present the writer's opinion on a current topic, and may be based on personal expertise or on research. However, because they are allotted much less space in an average large-circulation newspaper, letters to the editor are much briefer, sometimes only 1-2 sentences. Therefore they are not normally considered for Writing Portfolio submission at CPCS. (An exception might be granted, however, for a longer letter, such as those submitted for a local or community newspaper.)

· In your opening sentence, refer to the article or editorial or newsworthy subject about which you are writing.

Sir, It really should not have come as a great surprise to find another foreign car manufacturer pulling out of Great Britain (report, April 19). We have only ourselves to blame. That our national car industry, not so long ago arguably the finest in the world, should have been allowed to be reduced to zero is a disgrace.

Initially dealt a major blow by concerted union strikes, the motor manufacturing industry saw its problems compounded by the failure of successive governments to ensure forward-thinking management for our principal car brands, and to ensure investment for this part of our economy.

Governments should, too, have encouraged our people to have pride in our car industry and to choose to buy British.

Now we just have to rely on the kindness of Japanese manufacturers to employ our hapless car workers, with no national car business of our own to rely on. No doubt there will again be much dismay when that dwindling number of overseas manufacturers also decides to pull the plug, as surely they will.

Sir, Let this be a warning for the plethora of blue-chip British companies which have sold their business or assets to foreign competitors. Whatever assurances may be given about continuity of employment in the Undertakings concerned, ultimately they will be at the mercy of their new owners, who will tend to favour their own economies when decisions about investments or closures are made. In recent months much of the cream of British industry has been sold, including world leaders such as Pilkington, P&O, BPB and British Aerospace's Airbus holding. Before long, I fear, these too will go the way of Ryton.

Sir, it has been some time since I read something that I agreed with so wholeheartedly. Carol Sarler makes her point perfectly ("Oh do stop blubbing and shut up", April 20). The culture of blame is the cause of a lot of bad in society today. It seems ridiculous that previous generations have had life much worse than us; wars, poverty, disease and generally a lower quality of life. It seems the transition from then to now has turned us into spoilt little brats, out for everything we can get and unable to deal with anything out of the ordinary.

Sir, Carol Sarler landed a firm blow to the weak chin of our hysterical society. For some time now, we have been instructed to let out all our feelings.

People such as my father had much more subtle ways of dealing with trauma. Trying to get information from him about the Normandy landings was virtually impossible. He would always reduce it to the absurd.

"I told my mate, George, who was a bit seasick, that they'd give us a cup of tea when we got the gun ashore. They didn't. They sent us a mile up a lane and told us to start belting away. After a couple of hours, the barrel was red hot and we still hadn't had a cup of tea." And that was about it.

My Uncle Tom was even drier. I knew that as a naval gunner on a merchant ship he had been torpedoed at least twice. When, at last, I thought I had him in the mood to talk about it, he said: "Well, we weren't far. Off Newfoundland when Hitler said: 'Varden, that's far enough for you', and down we went."

These men weren't repressed, dour or uptight. They were amusing – and amused by – the ridiculous joke that is life. Fortunately, I suspect that there are still more about like them than we think. We all have sympathy for those who suffer – but big boys don't cry.

Sir, as a former colleague of Major General Andrew Ritchie, I can vouch that any suggestion (Carol Sarler, April 20) that he is retiring from the Army, either because of stress or because of "fears for his health" is absolute nonsense. General Ritchie's tour of duty at Sandhurst was somewhat longer than the norm, which is a testament to the high esteem in which he was, and is, held at the most senior levels in the Army. During the course " of last year, he was offered, and has accepted, the opportunity to become the principal of a leading college-of further education, which shares many of the values and standards for which Sandhurst is famed, and which he has done much to uphold. That General Ritchie should have been offered such a post bears witness to the manner in which he has commanded the Royal Military Academy over the past 31/2years, and to the way in which society should value the experience and expertise of senior officers in the armed forces.

Sir, Carol Sarler's advice to men to "pull themselves together" and "bottle it all up" really is old-fashioned nonsense.

Many of the health problems we have in this country are as a result of men doing what she recommends. We have a significant issue with the under-diagnosis of depression and other mental health problems in men, simply because too many men still think that they can't admit to them.

We'd have happier men, happier families and more productive workplaces if men could talk a little more about how they felt, to each other, to their partners and to their doctors.

Men's tendency to bottle up their feelings behind a macho facade of bravura leads to worsening health problems. For many men, simply talking about health is difficult, especially when it comes to sensitive issues. So let's encourage men to be much more open about their health problems and not to shut it all up.

Sir, Mr. Beckett called for books to be given as gifts on St George's Day (letter, 15 April), and I couldn't agree more. He may be interested to learn that St George's Day has another name – World Book Day – as designated by Unesco.

The book trade in recent years has chosen to hold World Book Day on a date that does not clash with schools' Easter holidays, to maximise the market opportunity to publicise books to children (who have been the focus of many of the events run since 1997). The date of the UK event is a topic of debate and review, so at some future point a World Book Day event in Britain may join its sister events around the world to be held on St George's Day, as Mr. Beckett proposed and Unesco instigated.

Sir, you highlight (report, April 20; letters, April 21) the obstacles faced by cyclists travelling on trains.

On Merseyside we are much more environmentally friendly than the train operators that you featured as we try to provide the public with a single integrated transport network accessible to all. As part of this goal, Mersey rail Electrics allows cycles on all trains at any time and for no extra charge. It is the only network in England to do so. Mersey travel also makes no charge for cycles taken on our ferries.

While we accept that many people may choose or need to travel by car, we are not just committed to providing affordable and viable alternatives but we actively promote their use.

Our approach is not just good for the environment but a positive boost for the fitness levels of our local population. Let us hope that the private train operators outside Mersey-side can find ways to match our own innovative, green and healthy solution.

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