MSN MoneyCentral – A US Senate Banking panel is gearing up to hold hearings as early as next week into hedge funds and how their explosive growth is influencing markets.
The Senate Banking Subcommittee on Securities and Investment, led by Nebraska Republican Chuck Hagel, has invited top hedge fund figures and regulators to discuss how the industry, with $1,200bn (€986bn) in assets, is affecting capital markets.
Among those due to appear are John Gaine, president of industry lobby group the Managed Funds Association; Jim Chanos, founder of $3bn hedge fund Kynikos Associates and head of the Coalition of Private Investment Companies, a newly formed hedge fund lobby group; and a prominent individual from a US fund of hedge funds. Also attending will be Emil Henry, recently appointed assistant Treasury secretary for Financial Institutions.
The hearing comes as hedge funds face greater scrutiny by lawmakers and regulators.
