Latest Articles
2010-09-20 12:27:25
Obama Government is Pushing Ahead With Hedge Fund Regulatory Laws
<p>The Obama <a href="http://www.foreclosurewarehouse.com/content/foreclosures/tax-foreclosure/how-to-buy-government-tax-foreclosure-properties/">government</a> is pushing ahead with hedge fund regulatory laws – the draft being unveiled on Wednesday 15th July 2009. It will make it mandatory for all the hedge funds with assets above $30 million to register with Securities and Exchange Commission.</p>
<p>This one step will bring to an end decades of independence enjoyed by hedge funds. So far it had been free from regulatory supervision but from now on more stringent measures will be taken than had been anticipated in this alternative group dealing with investments. One will be “quite tough” capital conditions to put and end to jumbo funds “gambling with their size.”</p>
<p>Michael Barr the Treasury Assistant Secretary for Financial Institutions while speaking at the Exchequer Club on Wednesday 15th July 2009 at Washington said, that “sweeping reforms” would be brought about in the <a href="http://www.foreclosurewarehouse.com/content/foreclosures/condominiums-foreclosure-booming-market-for-financial-institutions/">financial</a> area. The hedge fund legislation that had been sent to Congress would be vigorously followed up. Barr said, “To protect <a href="http://www.foreclosurewarehouse.com/content/foreclosures/foreclosure-listings/investors-need-foreclosure-list-successful/">investors</a>, under our proposal, hedge fund advisers will be registered with the SEC for the first time and will be required to disclose to regulators and investors more information about the characteristics of their advised hedge funds - including asset size, borrowings, off-balance sheet exposure and other matters.”</p>
<p>Hedge funds have regularly been considered important because of either their bulk or the amount of their dealings with the financial system. Now they will have to submit to strict regulatory standards and supervision.</p>
<p>These hedge funds will be controlled as “Tier 1 Financial Holding Companies” according to Barr. He said, “These firms will face appropriate prudential requirements regarding capital, liquidity, and risk management.” The Tier 1 companies will be subjected to the rules laid down by USA Federal Reserve and also SEC.</p>
<p>Barr explained that the capital conditions of these companies would be extremely tough. The suggested regulation would prevent and “counteract any incentive for the largest firms gambling with their size.”</p>
<p>The hedge funds had not been the focus of the present financial mayhem said Barr but their delivering and lack of clarity has raised questions and it is thought that these funds have contributed largely to the disorder in the <a href="http://www.foreclosurewarehouse.com/content/foreclosures/condominiums-foreclosure-booming-market-for-financial-institutions/">market</a> that is now being witnessed. Barr explained, “These firms continue to present unknown risks, and that lack of transparency is no longer tenable. We need a system that’s flexible enough to adapt to the emergence of other institutions that could pose a risk to the system. And we need a system that lets regulators see risks as they emerge across the financial system.”</p>

Recent Posts
Next Videos
Related Post

Industry, Education
Negotiating Tip 114: Retreat Negotiations
March 29, 2019

Industry, Education
Negotiating Tip 113: Activating Our Opponent
March 28, 2019

Industry, Education
Negotiating Tip 112: Misconceptions
March 27, 2019
