WASHINGTON, April 15, 2008
Fed Calls For Transparency For Hedge Funds
Virtually Unregulated Funds Get Voluntary Guidelines From Managers, Investors
-
Treasury Secretary Henry Paulson (AP Photo/J. Scott Applewhite)
The guidelines call on hedge fund managers to improve their operating procedures in such areas as disclosure, valuation of their assets, risk management and guarding against conflicts of interest.
One set of the recommendations was prepared by hedge fund managers and the other was put together by investors who use the funds.
Treasury Secretary Henry Paulson said the recommendations would send “a strong message that heightened vigilance is necessary and appropriate and that all stakeholders have an important role to play.”
The release of the guidelines comes at a time when a severe credit crisis has roiled financial markets with many large banks and investment houses being forced to declare billions of dollars in losses. Hedge funds have been caught up in the turmoil as investors have grown worried about the solvency of funds that invested heavily in securities backed by subprime mortgages, where delinquencies have hit record levels.
Hedge funds have grown explosively in recent years with estimates that there are now more than 8,000 funds with close to $2 trillion in assets.
They currently operate with very little government supervision, catering to institutional investors and very wealthy individuals. However, millions of ordinary people have also become unwitting investors in the funds through their pension plans.
In early 2007, a presidential working group headed by Paulson rejected the idea that the funds needed increased regulation and said what was needed was improved voluntary standards for both fund managers and investors.
In unveiling the recommendations of the advisory groups on Tuesday, Paulson said the administration was not endorsing the status quo but rather pushing for improvements that would keep U.S. financial markets competitive in a global economy.
“We want the world's highest investor protection standards, we want to guard against systemic risk and keep the United States the most competitive financial marketplace in the world,” Paulson told reporters at a Treasury news conference.
© MMVIII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
Add a Comment
US Treasury Secretary Henry Paulson
Has Already Received His PERSONAL BAIL-OUT
Under Treasury Secretary Henry Paulson%u2019s .. Former leadership at
Goldman Sachs, the company has been instrumental to its penetration of Western
capital and other markets. - - Henry Paulson was vastly effective in Communist
China%u2019s .. Interests and enabling their access to Western economic assistance
and high technology
In late January 2006, Goldman Sachs purchased a stake in the Industrial and
Commercial Bank of China (ICBC), China%u2019s biggest bank, for $2.58 billion
Treasury Secretary Henry Paulson''''''''s .. Personal stake .. In this transaction
was $25 million
U.S. Treasury Secretary Paulson sounded a tougher note than ever against any
possibility of bailout for individual mortgage holders, singling out the growing number
going "under water" as their loans exceed the diminishing value of their properties.
,
NO MATTER WHAT THE CREDIT IS, THEY WILL RE-FI EVERYONE AT JUST OVER PRIME, AND AT A RATE OF 40% OF WHAT IS OWED ON THE PROPERTY( PERSONAL HOMES ONLY)!!
FOR-AMERICA@HOTMAIL.COM
DAVID A BELANGER
FOR COMMON SENSE THIS IS SO EASY TO FIX DONT MAKE IT HARDER THAN IT IS PEOPLE.
AND LOOK AT THIS MORNINGS NEWS, THE GREAT POTATOHEAD PAULSON,AND BEN ARE IN TALKS WITH ANOTHER WALLSTREET FIRM GOING DOWN. MERRILL LYNCH!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
WHAT MORE BAILOUTS FOR WALLSTREET COMING.- Reply to this comment
- Are we really sure we need Transpacency right this minute?
That could unsettle the already leaning house of cards...... - Reply to this comment
- this is more important to debate, than this s/h/i/t/
if it aint MR. POTATOHEAD, LOOKS PRITTY SCARED DOENT HE. ITS FUNNY TO HAVE THIS INSIDER OF WALLSTREET HAVE SO MUCH POWER..
LISTEN IF THEY ( CONGRESS) WOULD DO THERE JOBS WE WOULDN''''''''''''''''T BE IN THIS MESS.
ANYONE THAT TOOK OUT LOANS FROM 2000 TO 2007
REGARDLESS OF WHAT THERE CREDIT LOOKS LIKE RIGHT NOW, BECAUSE OF THIS MESS MOST HAVE LOST THEIR GOOD RATING.
THEY NEED TO COME OUT AND TELL ALL MORTGAGE COMPANYS
TO RE-FI EVERYONE NOW. NO EXCEPTION IF THEY HAVE A
MORTGAGE THAN TAKE 60% OFF THE BALLANCE AND RE-FI THEM AT 1 PERCENT OVER PRIME AND STOP ALL THE BLEEDING FOR ONCE..THAT IS ALL THAT HAS TO BE DONE, SIMPLE,FAST,AND IT WOULD STOP ALL FORCLOSEINGS,BURNINGS OF HOMES,AND STOP 10''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''S OF MILLIONS FROM BEING ON THE STREET..
THIS IS MORE INPORTANT, THAN THIS ***.
OR HOW ABOUT REPORTING THAT WE THE PEOPLE WANT TO KNOW THIS FROM CLINTON AND MCCAIN. WHAT DO YOU WANT TO SAY TO THE 374,298 AMERICANS DEAD,HURT,MAIMED IN THIS WAR YOU SUPPOTED FROM THE START..HOW ABOUT ASKING THEM THIS
TIME TO MARCH DOWN AND TAKE THEM OUT.. - Reply to this comment
- HE LOOKS LIKE THE MONKEY JUST CAME OUT HIS A/S/S/ DOESNT HE LOOK GREAT..
Posted by forthepeopl1
That, or Buffet and Epstein just goosed him with a 12 inch dil-do up his kazoo, and they whispered behind the curtail "Hold it, or we will ram-it all the way to your tonsels." - Reply to this comment
- HE LOOKS LIKE THE MONKEY JUST CAME OUT HIS A/S/S/ DOESNT HE LOOK GREAT..
- Reply to this comment
- if it aint MR. POTATOHEAD, LOOKS PRITTY SCARED DOENT HE. ITS FUNNY TO HAVE THIS INSIDER OF WALLSTREET HAVE SO MUCH POWER..
LISTEN IF THEY ( CONGRESS) WOULD DO THERE JOBS WE WOULDN''''''''T BE IN THIS MESS.
ANYONE THAT TOOK OUT LOANS FROM 2000 TO 2007
REGARDLESS OF WHAT THERE CREDIT LOOKS LIKE RIGHT NOW, BECAUSE OF THIS MESS MOST HAVE LOST THEIR GOOD RATING.
THEY NEED TO COME OUT AND TELL ALL MORTGAGE COMPANYS
TO RE-FI EVERYONE NOW. NO EXCEPTION IF THEY HAVE A
MORTGAGE THAN TAKE 60% OFF THE BALLANCE AND RE-FI THEM AT 1 PERCENT OVER PRIME AND STOP ALL THE BLEEDING FOR ONCE..THAT IS ALL THAT HAS TO BE DONE, SIMPLE,FAST,AND IT WOULD STOP ALL FORCLOSEINGS,BURNINGS OF HOMES,AND STOP 10''''''''''''''''''''''''''''''''S OF MILLIONS FROM BEING ON THE STREET..
THIS IS MORE INPORTANT, THAN THIS ***.
OR HOW ABOUT REPORTING THAT WE THE PEOPLE WANT TO KNOW THIS FROM CLINTON AND MCCAIN. WHAT DO YOU WANT TO SAY TO THE 374,298 AMERICANS DEAD,HURT,MAIMED IN THIS WAR YOU SUPPOTED FROM THE START..HOW ABOUT ASKING THEM THIS
TIME TO MARCH DOWN AND TAKE THEM OUT.. - Reply to this comment
if it aint MR. POTATOHEAD, LOOKS PRITTY SCARED DOENT HE. ITS FUNNY TO HAVE THIS INSIDER OF WALLSTREET HAVE SO MUCH POWER..
LISTEN IF THEY ( CONGRESS) WOULD DO THERE JOBS WE WOULDN''''T BE IN THIS MESS.
ANYONE THAT TOOK OUT LOANS FROM 2000 TO 2007
REGARDLESS OF WHAT THERE CREDIT LOOKS LIKE RIGHT NOW, BECAUSE OF THIS MESS MOST HAVE LOST THEIR GOOD RATING.
THEY NEED TO COME OUT AND TELL ALL MORTGAGE COMPANYS
TO RE-FI EVERYONE NOW. NO EXCEPTION IF THEY HAVE A
MORTGAGE THAN TAKE 60% OFF THE BALLANCE AND RE-FI THEM AT 1 PERCENT OVER PRIME AND STOP ALL THE BLEEDING FOR ONCE..THAT IS ALL THAT HAS TO BE DONE, SIMPLE,FAST,AND IT WOULD STOP ALL FORCLOSEINGS,BURNINGS OF HOMES,AND STOP 10''''''''''''''''S OF MILLIONS FROM BEING ON THE STREET..
THIS IS MORE INPORTANT, THAN THIS ***.
OR HOW ABOUT REPORTING THAT WE THE PEOPLE WANT TO KNOW THIS FROM CLINTON AND MCCAIN. WHAT DO YOU WANT TO SAY TO THE 374,298 AMERICANS DEAD,HURT,MAIMED IN THIS WAR YOU SUPPOTED FROM THE START..HOW ABOUT ASKING THEM THIS
TIME TO MARCH DOWN AND TAKE THEM OUT..- Reply to this comment
