Before revision:  None of these policies are optimal for everyone: Risk neutral investors prefer the unregulated case with a maximum leverageof roughly four , banks prefer the perfect hedge policy, and fund managers prefer the unregulated case with a high maximum leverage.
After revision:  None of these policies are optimal for everyone: Risk neutral investors prefer the unregulated case with low maximum leverage , banks prefer the perfect hedge policy, and fund managers prefer the unregulated case with a high maximum leverage.