Financial News Online US – The US House of Representatives has approved a bill to commission a study on hedge funds that could result in greater disclosure for theindustry. The move follows calls from regulators to increase scrutiny in the wake of the $6bn (€4.7bn) of losses suffered by Amaranth Advisors.
The bill, HR6079, was introduced by Congressman Mike Castle and requires regulators to study and make recommendations about hedge funds. Castle said the approval of the bill was the first step to shed more light onto hedge fund investments.
The President’s Working Group on Financial Markets will conduct the study should the Senate pass the bill, however there is currently no companion bill in the Senate and it is not expected until mid-2007.
Jim Chanos, chairman of the Coalition of Private Investment Companies which represents hedge funds, said he is pleased the bill was passed. He said if the bill should become law, the President’s Working Group should take a broad view of the issue, looking at all participants engaged in similar investments activities rather than a “prism of a single segment of the marketplace.â€Â
