Hedge Funds

Greenspan voices opposition to hedge fund regulation

by

Federal Reserve chairman Alan Greenspan, meanwhile, took an opportunity the same day to again voice his opposition to further regulation of the U.S. hedge fund industry.

Arguing that the market itself was a better regulator of hedge funds than the government would be, he put his case to bankers at a Federal Reserve Bank of Chicago event via a broadcast address.

While defending hedge funds, the Fed chief also took the time to emphasize his view that risky investments in derivatives strategies could destabilize the financial system if a crisis were to occur even though the growth of derivatives