Thursday, June 29, 2006

HEDGE FUND FOLLOW-UP -- In all the excitement surrounding the resignation of an S.E.C. investigator, we almost forgot about the actual issue:
Connecticut Attorney General Richard Blumenthal (D) urged Congress yesterday to heighten federal scrutiny of the secretive hedge fund industry or face the prospect of a patchwork group of state authorities stepping in to monitor the rapidly growing investment pools to prevent fraud.

Blumenthal, whose state is the headquarters for scores of hedge funds, told the Senate Judiciary Committee that last week's federal appeals court ruling striking down oversight of the funds by federal regulators left investors "in a regulatory void, without any disclosure or accountability."