Hedge fund debate
Lawmakers are expected to introduce legislation today to clamp down on the mostly unregulated hedge fund industry. But those hoping for a shorter leash shouldn't hold their breath, Janet Babin reports.
TEXT OF STORY
SCOTT JAGOW: Some $2 trillion are wrapped up in investment pools called hedge funds. They’re mostly unregulated, but some lawmakers want to change that because more average investors are getting into these. Janet Babin reports.
JANET BABIN: Yesterday, a former SEC attorney told the Senate the government has given hedge funds a regulatory pass.
House Democrats agreed. They’re introducing legislation that would force hedge funds to open up their books a bit more to the SEC.
But Georgetown University professor James Angel says Congress is proposing a lot of legislation this week, and hedge fund changes will probably go nowhere. And that’s the point.
JAMES ANGEL:“It isn’t about passing legislation, it’s about positioning before the elections.”
Some hedge fund managers complain about the call for more protections. But Marc Freed with hedge fund managers Lyster Watson tells them to be careful what they wish for:
MARC FREED: “You’re one scandal away from having a worse regulatory regime that you like less than this one.”
I’m Janet Babin for Marketplace.