WEST PALM BEACH, FL (HEDGECO.NET) – In recent months, there has been increasing speculation that hedge fund regulation proposals by the SEC will be enacted into law. Some lawyers however, have begunto raise questions whether these proposed laws will ever materialize at all. According to various reports, there are increasing rifts and internal disagreements over the proposed hedge fundregulations.
Michael Tannenbaum, a partner at Tannenbaum Helpern Syracuse & Hirschtritt Company, said he does not think these proposals will come true. Tannenbaum, speaking about the unlikelihood of such laws being enacted said, �Its registration is withering on the vine.� Another hedge fund industry participant Seth Taube, partner at Baker and Botts in New York, said he does see the regulation of hedge funds happening. �The tide has turned,� he surmised.
Members of the US hedge fund industry as well as prominent members of the US financial markets have harshly criticized the new hedge fund regulation proposals. Elliott Spitzer, the New York State Attorney General once said, �I�m a little skeptical of the effort to focus so much attention on hedge funds right now, I don’t think the notion of regulating hedge funds as a general area should be getting quite as much attention as it has been.� Spitzer made his statements in New York, while testifying before a congressional subcommittee.
Another financial markets heavyweight, Alan Greenspan, the Chairman of the Federal Reserve Board is also against such regulation. Greenspan made his own remarks during his testimony at the Senate Banking Committee recently. Hedge funds have steadily increased their transparency reporting to the fund�s investors. When Greenspan was asked a question relating to systemic risks in the hedge fund industry, he replied, �There may be systemic risks, but I haven’t found any yet.�
An anonymous source said the SEC is currently preoccupied with the Mutual fund matters, and may also be hampered with financial resources to adequately handle pending tasks.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: [email protected]
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