As the global economic crisis unfolds, the activities of hedge funds and the shadow banking system are coming under increased scrutiny. Leaders of the G-8 and G-20 countries are calling for stricter regulation of the financial system. Some of them, including Presidents Obama and Sarkozy, Chancellor Merkel, Dominique Strauss Kahn at the International Monetary Fund and others, have noted the role that tax havens have played in hosting this shadow banking world, and are calling for strong measures to remove these weak links in the regulatory chain and put an end to the tax avoidance industry. Pressure for major reform will increase as the crisis worsens and begins to include other economic sectors and regions of the world.