U.S. Regulators Concerned About Leverage In Large Hedge Funds

(Reuters) The heads of the major U.S. financial regulatory agencies on Monday raised concerns about a concentration of leverage in large hedge funds and called for a working group to collect and analyze data on the privately held firms in a report on asset management.

But the Financial Stability Oversight Council, tasked with finding and reducing systemic risk, did not designate any asset managers as “systemically important” – a move that could ease concerns that have gripped the fund industry for years.

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