Hedge Funds

Connecticut creates unit to oversee hedge funds

by

Connecticut banking regulators said this week that they have developed a working group to monitor hedge funds.

As home to some of the world's largest hedge funds, Connecticut has witnessed some of the largest hedge fund scandals and blowups, including Bayou Management and, most recently, Amaranth Advisors. Legislators, however, have dragged their feet on creating a permanent task force to monitor hedge funds, leaving the job to the state's Department of Banking, which appointed six investigators to staff the new unit.

Proponents of greater hedge fund regulation say Connecticut has taken a step in the right direction, but critics counter