Focus Infomation – France on Friday will press for tighter controls on hedge funds, urging other big industrialised nations to strengthen regulation of the industry and compel banks that lend them money to hold more capital. Paris wants the European Union, and eventually all leading economies, to beef up indirect regulation of hedge funds via their prime brokers, the banks which provide them with loans and other services.

Under plans to be floated by Christine Lagarde, French finance minister, banks could face higher capital requirements to reflect the riskiness of their hedge fund clients, a proposal likely to be resisted by banks that are already struggling to raise capital.

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Tags: banks, christine lagarde, european-union, french finance minister, loans, money, paris, prime-brokers, proposal

All Headline News – Hedge funds will require registering under a new proposal to regulate the market segment that lost $600 billion in 2008 due to financial crisis, an all time record.

Under the bill by two senators today would lead to the regulation of hedge funds by the Securities and Exchange Commission, a step that is considered to protect investors and prevent the U.S. financial system from further sinking into the recession.

The Hedge Fund Transparency Act, sponsored by Senator Carl M. Levin (D-Mich.) and Charles E. Grassley (R-Iowa), was filed on Thursday amid the new administration’s initiative to overhaul some legislation of the regulatory system.

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Tags: charles e grassley, financial crisis, headline news, initiative, investors, legislation, levin, market segment, new administration, proposal, recession, regulatory system, securities-and-exchange, securities-and-exchange-commission, senators, time record, transparency