Gordon Brown Speaks of Cracking Down on "Shadow Banking System"

Britain's Prime Minister, Gordon Brown, spoke yesterday of massive changes to the oversight of the "shadow banking system," including hedge funds and investment banks. Brown noted that financial institutions of all sorts should be regulated based on what they do, rather than how they classify themselves.

Hedge fund regulation will likely be a heavily debated subject at the G20 meeting beginning April 2. G20 finance ministers, meeting in Sussex, agreed that hedge funds and their managers should be registered and “disclose appropriate information to assess the risks they pose”.

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