U.S. Hedge Funds Demand Bank of England Free $65B in Frozen Lehman Assets

(MoneyWatch)  US hedge funds have called on the Bank of England to free up some ?£38bn in Lehman Brothers Holdings assets -- or face disaster for UK plc.

But can they reasonably complain of regulatory scapegoating? Or are their current difficulties simply proof that the market's working as it should -- even if it's going against them? Here are some varying views on whether financial sector regulation's gone far enough -- or too far:

• "Hedge funds are more like cockroaches. They get a bad press but are very hard to kill."
• "It was the failures of London that made Paulson's decision wrong."
• Is deregulation to blame for the financial sector's current problems?
• "It is unnecessary to 'punish' hedge funds because they are already suffering enough."

This post first appeared on the BNET blog Sterling Performance.