Reuters- Critics blasted a Treasury Department call for the $1.8 trillion hedge fund industry to better police itself, saying voluntary guidelines did little to protect investors and regulate the pools of capital.
Instead, the guidelines should be mandatory and federal regulations are needed to oversee the fast-growing hedge fund industry, they said.
"This plan is one small step when giant strides are needed," said Richard Blumenthal, attorney general for Connecticut, where about a third of the world’s hedge funds are located. "Non-binding best practices or voluntary guidelines are an imaginary fence and virtual farce. They stop nothing."
