Greater scrutiny of the hedge fund industry came a step closer to reality this week when five top hedge fund managers told a Congressional hearing they weren’t opposed to more regulation of hedge funds.
They also said the federal bailout money should be made available to troubled institutions other than banks but ignored the direct question as to whether hedge funds might receive such aid.
The sight of five prominent managers testifying under oath in Washington was a reminder of the new financial landscape, where even the wealthiest elite who have been shrouded in secrecy have no place to hide. In the past, the hedge fund industry vehemently opposed regulation but now seems resigned to it, given the current climate.
Kenneth Griffin, whose $15 billion Citadel Investment Group is the largest market maker...