{"id":5090,"date":"2006-10-02T00:00:00","date_gmt":"2006-10-02T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"investors-not-hedge-funds-should-be-regulated","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/10\/2006\/investors-not-hedge-funds-should-be-regulated.html","title":{"rendered":"Investors, not hedge funds, should be regulated"},"content":{"rendered":"<p>Record Searchlight &#8211; <span class=\"bodytext\">A decade ago, derivatives trading was the hot new thing, and people began to worry about the harm it might cause to investors and the health of thefinancial system. It wasn&#8217;t long before someone proposed regulating the newfangled financial instruments. And just as inevitably, the affected industries worked themselves up into a lather about howregulation would stifle innovation, reduce market efficiency and drive the industry offshore.<\/span><\/p>\n<p>  <span class=\"bodytext\">The industry won. Then came the collapse of Enron, a big derivatives trader, prompting some to conclude that modest regulation might be useful after all.<br \/><\/span><\/p>\n<p>  <span class=\"bodytext\">Today, the hot new thing is hedge funds, and the same arguments and political dynamics are playing themselves out. The Securities and Exchange Commission promulgated a rule  that would have required the hyper-aggressive managers of these private pools of capital to register with the commission, follow a few simple rules and open their books to periodic review. The  industry sued, claiming that the agency had exceeded its authority. Once again, the industry won.<\/span><\/p>\n<p>  <span class=\"bodytext\">Hedge funds are a big deal. Globally, they control an estimated $2.4 trillion in investments and, on many days, their trading accounts for a third of the volume on major  stock exchanges. They have become a major source of profit for Wall Street bankers and brokers. Every major investment house or private equity firm has started one, and no self-respecting pension  fund or university endowment would dare not have some of its assets in hedge fund investments.<\/span><\/p>\n<p><a href=\"http:\/\/www.redding.com\/redd\/nw_business\/article\/0,2232,REDD_17527_5035408,00.html\">Read Complete Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Record Searchlight &#8211; A decade ago, derivatives trading was the hot new thing, and people began to worry about the harm it might cause to investors and the health of thefinancial system. It wasn&#8217;t long before someone proposed regulating the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-5090","post","type-post","status-publish","format-standard","hentry","category-syndicated"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/5090","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=5090"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/5090\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=5090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=5090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=5090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}