Financial Regulatory Forum

ANALYSIS-Wall Street still in the hedge fund game

By Svea Herbst-Bayliss and Matthew Goldstein

BOSTON/NEW YORK, June 25 (Reuters) – It appears Wall Street investment banks can stay in the highly-profitable hedge fund business after all.

An overhaul of financial regulations hammered-out by U.S. lawmakers after weeks of negotiation would permit Wall Street banks to continue to manage and sponsor hedge funds along with private equity funds, according to lawyers and Wall Street officials familiar with the massive bill.

For months Wall Street bankers and hedge fund managers have worried that the legislation, which could be signed into law by President Obama within two weeks, would prohibit investment banks from running hedge funds and possibly force them to sell these often very profitable businesses.

But the version of the bill agreed to by lawmakers on Friday morning would not force the draconian changes sought by some critics of the financial industry, said sources familiar with the bill.

Still, Wall Street is not quite ready to celebrate.

That’s because a final language of the financial regulatory reform bill in not yet public and must still be voted on by Senate and the House of Representatives before going to Obama.

Singapore prepares to tighten rules for hedge funds – source

Office buildings of housing banks and wealth management funds are pictured in Singapore's financial district March 17, 2009. REUTERS/Vivek Prakash  (SINGAPORE BUSINESS CITYSCAPE) By Kevin Lim
SINGAPORE, Oct 19 (Reuters) – Singapore is preparing to tighten regulations for hedge funds and other alternative fund managers, potentially making it more difficult and expensive for smaller newcomers to set up operations, sources said.


Pension funds join battle over EU hedge fund rules

By Joel Dimmock
LONDON, Aug 4 (Reuters) – British pension funds have begun exerting pressure to change proposed European Union rules that would impose new regulations on the hedge fund and alternative investment sector.