Treasury Nominee Urges Consideration Of Hedge Fund Registration

Jan 22 2009 | 12:15pm ET

A second key member of President Barack Obama’s economic team is calling for a reconsideration of hedge fund registration. Timothy Geithner, Obama’s pick to be the next Treasury secretary, told the Senate Finance Committee that requiring registration would shine a light on the secretive industry.

“The financial crisis has highlighted the urgent need to overhaul the oversight of our financial system,” Geithner, current president of the Federal Reserve Bank of New York, said in written testimony. “With an objective of bringing greater transparency and oversight, I believe that we should consider requiring registration of hedge funds.”

Geithner testified before the committee yesterday, and it was set to consider his nomination this morning. He is expected to win approval both by the committee and the full Senate, despite the revelation that he failed to pay payroll taxes when he worked at the International Monetary Fund.

During his oral testimony, Geithner conceded that his supervision of Wall Street while head of the New York Fed “absolutely” could have been better. But he noted that he had worked to draw attention to hedge funds and some of the complicated, and unregulated, securities and financial instruments they use. In his own statement to the committee, Sen. Charles Schumer (D-N.Y.) pointed out that as early as September of 2006, Geithner was calling for increased regulation of hedge funds.

Obama’s pick to head the Securities and Exchange Commission, Mary Schapiro, has also called for revisiting the issue of hedge fund registration. The SEC imposed a registration requirement on hedge funds in 2005, but the rule was later struck down by a federal court.


In Depth

Hedge Fund Veteran Peter Borish Talks Trading

Dec 17 2014 | 9:32am ET

Peter Borish says 2014 was “tricky” from a trading perspective. “The best...

Lifestyle

Cohen Donates $1.5M To GOP Governors Association

Dec 10 2014 | 7:13am ET

The Republican Governors Association raised close to $25 million from October 1...

Guest Contributor

Q&A With Daniel Gallancy: Institutional Interest In Bitcoin Is Growing Steadily

Dec 12 2014 | 7:54am ET

Daniel Gallancy is founder and CEO of SolidX, a provider of total return swaps for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.