Dow Jones- U.S. securities regulators see little sign of systemic risk stemming from two troubled Bear Stearns Cos. (BSC) hedge funds, Securities and Exchange Commission Chairman Christopher Cox said Tuesday.

At a House Financial Services Committee hearing, Cox was asked whether investments in troubled subprime loans, which have wreaked havoc on the two Bear Stearns hedge funds, might result in broader market problems.

Cox reassured lawmakers that “we see little basis for systemic risk” arising from problems at the two hedge funds. He added that the SEC and its staff talk regularly with Wall Street investment banks and brokerage firms, receiving ” real-time reports” of any emerging weaknesses. Cox said he doesn’t think those reports show any cause for alarm about U.S. markets.

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