September 30, 2006

Banks to Play Big Brother Role?

Banks are ensuring that they keep an eagle eye on the volatile $1.2 trillion hedge fund industry. With trading having the potential to cause regional or global economic instability, financial regulators over the globe should join hands in watching over the activities of hedge funds, said Liu Mingkang, head of the China Banking Regulatory Commission in a statement on the commission’s website.

With the anxieties caused by the collapse of Amaranth Advisors, there seems to be enough reason for regulators to feel that the hedge fund industry needs supervision. Liu issued the statement after meetings held with counterparts from Singapore, Italy, Germany, Thailand and Hong Kong from September 16 to 26.

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