Wednesday, 2 December 2015
Last updated 7 hours ago
Feb 25 2008 | 2:17pm ET
Hedge funds remain a danger to the economy, according to a Congressional report released today.
“There is still potential for systemic risk” to the economy, Rep. Paul Kanjorski (D-Pa.), head of the House Capital Markets Subcommittee, said of hedge funds, in spite of industry efforts to improve management and transparency. “We need to ensure that we have adequate knowledge of this sector of our capital markets and effective market discipline, especially as the pension assets of more and more Americans are invested in hedge funds.”
The report, prepared by the Government Accountability Office, was released by Reps. Kanjorski, Michael Capuano (D-Mass.) and Barney Frank (D-Mass.), who commissioned it in 2006.
Hedge funds “require continued monitoring by regulators and counterparties,” it concludes.
“Not all investors have the capacity to analyze the information they receive from hedge funds.”
In spite of the dire warnings, none of the three lawmakers behind the report called for new legislation to rein hedge funds in.
“The dynamic nature of the financial markets requires that we continue to examine evolving practices in this area,” Frank said.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…