Thursday, 21 August 2014
Last updated 47 min ago
Jul 23 2008 | 11:16am ET
U.S. Treasury Sec. Henry Paulson doesn’t want the power to take over hedge funds in trouble, but he may need it.
Paulson, who also took time yesterday to urge Congress to pass Pres. Bush’s plan to bail out mortgage giants Fannie Mae and Freddie Mac, said the Treasury needs the authority to manage the collapse of large hedge funds.
“I would rather not ask for extraordinary powers, but I’m playing the hand I’ve been dealt,” he said.
Specifically, he asked for “additional powers to manage the resolution, or wind-down, of large non-depositary financial institutions, such as larger hedge funds, so as to limit the impact of a failure on the broader financial system.”
“Over the last several weeks, the need to move quickly toward an optimal regulatory structure that establishes a prudential financial regulatory system, focused on promoting long-term market stability has become all the more apparent.”
Paulson had previously supported giving the Federal Reserve greater oversight power over hedge funds.
Aug 4 2014 | 7:42am ET
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The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note