Progress on hedge fund manipulation tracking, although I'm sure the bleeding hearts will start their whiney defenses of secrecy when it suits their scam.
Lawmakers Roll Out Hedge Fund Bill
JANUARY 29, 2009, 3:26 P.M. ET
By JESSICA HOLZER
online.wsj.com
WASHINGTON -- Hedge funds would be required to register with the Securities and Exchange Commission and establish anti-money laundering programs under legislation introduced in the U.S. House and Senate Thursday.
Hedge funds would be exempt from the more onerous requirements of the 1940 Investment Company Act, however, if they agree to open their books and records to the SEC, file basic disclosures with the agency and cooperate on any information requests, according to a summary of the bill.
Previous efforts to force hedge funds to register with the SEC have fallen flat. The bill's Senate sponsor, Sen. Charles Grassley (R., Iowa), said he hopes the financial crisis has changed minds on the matter.
"There wasn't much of an appetite for this sort of legislation before the financial crisis. I hope attitudes have changed and that Congress takes up this important legislation without delay," Mr. Grassley said.
The bill is similar to one Mr. Grassley introduced in 2007, which got little traction. Like the previous legislation, the bill introduced Thursday would give the SEC explicit authority to require hedge fund registration.
It also includes language subjecting hedge funds to the same anti-money laundering laws financial institutions must follow. Hedge funds would be required to report any suspicious transactions to federal authorities.
Rep. Sandy Levin (D., Mich.), the bill's House sponsor, pushed legislation in the last Congress that would have hiked taxes on hedge funds and private equity firms.
Write to Jessica Holzer at jessica.holzer@dowjones.com
online.wsj.com |
