Wednesday, July 26, 2006

Hedge Fund regulation

Hedge funds leave SEC

2/3 of hedge funds are based offshore to minimize regulation. Recently the U.S. Securities and Exchange Commission ruled that hedge funds do not have to register in order to operate. A month later, ten hedge funds withdrew their registration from the said agency.

Trillion dollars of unregulated funds moving fast and at the whim of the fund managers could severely damage weak and not-so-weak economies. Even a token regulation is better than none.

No comments: