WEST PALM BEACH, FL (www.hedgeco.net) – Financial Market Regulators from around the world are gearing up efforts towards the regulation of hedge fund industry amidst recent reports that the growth ofhedge funds could threaten the stability of the financial markets. According to the Financial Times reports, the representatives of the Global Financial Markets will be meeting with hedge fundindustry leaders in New York to discuss strategies to reduce any potential risk to the markets from a possible hedge fund collapse.
The president of the New York Federal Reserve, and the current managing director for Goldman Sachs Group, Jerry Corrigan, are organizing the effort. According to the report, Mr. Corrigan is working in conjunction with senior bankers, brokers, and fund managers to find ways to strengthen the global financial sector. Such effort aims to prevent another hedge fund collapse like the Long Term Capital Management fiasco in 1997.
Corrigan has expressed concerns that the impending market conditions such as low interest rates may create potential risks for investors. Regulators in the European Union have expressed interests in overview of hedge funds as part of the broader overview of the European financial Asset management industry. Charlie McCreevy, the European Union internal market commissioner, told a recently completed conference, �We need to explore what, if anything, needs to be done in the light of the macroeconomic and stability concerns that have been raised as well as looking at the investor protection issues.”
Regulators often cite the exponential asset growth taking place within the global hedge fund industry. Some hedge fund asset tracking firms believe the global hedge fund assets have now reached $1.5 trillion.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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