The Washington Times – Hedge-fund managers say Bernard L. Madoff may succeed where Christopher Cox failed: forcing regulation of their $1.5 trillion industry.

Mr. Madoff’s purported bilking of investors by up to $50 billion begins to uncover a part of the investment industry that has skirted government scrutiny. Although the 70-year-old was registered with the U.S. Securities and Exchange Commission, the agency Mr. Cox heads, fund executives who fed him customers’ money weren’t.

"This is an Enron moment for hedge funds," said Peter Rup, chief investment officer at New York-based hedge fund Orion Capital Management LLC, with $400 million in assets under management. "Regulation would be welcome, primarily from a trust standpoint."

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New York Post – As the Securities and Exchange Commission continues its assault on short sellers, hedge funds are discussing legal action to challenge Chairman Chris Cox’s recent moves – just as funds in the UK are considering lawsuits against their government regulator.

Since Friday, Cox has enacted a hodgepodge of emergency rules in an effort to give struggling Wall Street firms time to recover from their recent battering, including a widespread ban on shorting of financial stocks, and requiring hedge funds to disclose what they short.

That has prompted debate in the hedge fund world about what, if anything, might be done to temper efforts they say hurts good players along with the bad. Talk of legal action is still in the discussion stage, and no lawsuit may emerge.

"There are just a lot of questions right now," said an industry insider.

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