In a long-anticipated move, U.S. Treasury Secretary Timothy Geithner unveiled the Obama administration’s plan for heightened federal supervision of the financial system, which includes more regulation for hedge funds. Geithner’s plan was put forth at a House Financial Services Committee hearing held yesterday.
Geithner’s proposal would create federal supervision of hedge funds by requiring funds with assets under management “over a certain threshold” to register with the Securities and Exchange Commission. That threshold was not defined.
“U.S. law generally does not require hedge funds or other private pools of capital to register with a federal financial regulator, although some