Hedge funds, which were thought to have tied themselves in knots with credit derivatives and convertible bonds, did not have to mount massive firesales of their assets and instead saw net inflows from investors in the second quarter.

ECONOMIST: It??s not just natural disasters that need preparing for

These were much lower than those of its rivals, drawing accusations that it was trying to force them to mark their portfolios down to the same level so that it could pick up assets on the cheap in the ensuing wave of firesales.

ECONOMIST: The firm that came to dominate world finance