Paul Volcker Urges Congress to Restrict Hedge Funds
Former Federal Reserve Chairman and current Obama economic advisor, Paul Volker, urged Congress today to place "strong restrictions" on hedge funds and private equity firms to ensure market stability.
Below are some quotes from Volker's testimony:
“We must not again leave the markets so vulnerable that a breakdown will again threaten the national and world economies"
Volker and Obama, July 28, 2008
We need "strong restrictions on risk-prone capital market activities -- hedge funds, equity funds, proprietary trading and the like"
"We are living in a difficult time for the economy, with unprecedented complexities, complications and risks for financial markets and financial institutions."
"There are problems with the present international monetary system that have not received sufficient attention,"
It remains to be seen, what, if any, restrictions or registration requirements Congress will impose on hedge funds, but there current economic and political climate will certainly make it tough for private capital to remain as opaque as it once was.