Obama Administration to Introduce Hedge Fund Regulations

It appears the Obama Administration will seek some form of hedge fund regulation this week, though it is unclear how exactly they plan to regulate the 5000 or so US based funds. Obama and Geithner also plan to ann0unce regulations that will force certain derivatives onto exchanges with clearinghouses.

Obama and the Treasury are left with the task of convincing foreign leaders and corporations that the US financial system is still safe despite high profile failures of several hedge funds, and the downfall of some of the US' largest banks and brokerages.

Forcing derivatives including CDOs, CDS, and a whole host of other products onto exchanges would be likley to minimize counterparty risk and might encourage the responsible use of the more levered instruments.