Hedge Funds to Have More Oversight?
|July 22nd, 2009||
|On Wednesday July 15th of this year, the Obama administration proposed a bill for Congress that would require hedge funds with more than $30 million in managed capital to register with the government and disclose more information about their investment practices. These details would include traditionally secretive information such as their use of leverage. The idea behind the bill is to identify “excessive risk-taking” in the hedge fund industry and regulate those funds with a heavier hand. All registered hedge funds would also have to establish a “compliance program.” The bill received mixed reviews on Capitol Hill, with proponents arguing that the hedge fund industry needs more oversight while opponents claim the hedge fund industry was not at the center of the financial crisis.|