Financial Times – Hedge fund managers who earned more than $1bn last year, including George Soros and Philip Falcone, are being summoned to Capitol Hill on Thursday to testify under oath about the potential risks their firms pose to the broader economy.

The hearing before the House oversight committee, headed by Democrat Henry Waxman, marks one of the few instances in which the largely unregulated hedge fund industry will be subject to questions by lawmakers.

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Business Day South Africa – Examiners with the US Federal Reserve have questioned Wall Street counterparties about their exposure to debt and other holdings of Citadel Investment Group, The Wall Street Journal reported at the weekend.

Citadel denied the report.

Citing people familiar with the matter, the j ournal said the Fed questioned the counterparties in at least two instances in recent days.

But Katie Spring, a spokeswoman for Citadel, denied the rumours that the Fed had spoken to the hedge fund’s counterparties specifically about Citadel and possible problems with its debt.

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