US Congress turns spotlight on secret world of hedge funds

0 Comments | AFP, July, 2006

WASHINGTON (AFP) — The top US securities regulator is set to testify at a congressional hearing into the secretive world of hedge funds on Tuesday, days after a government probe reached the top ranks of Wall Street.

The Senate Banking Committee hearing follows fast on the heels of a Senate Judiciary Committee hearing into the hundred-billion dollar hedge fund industry late last month.

Tuesday's hearing also occurs as the Securities and Exchange Commission (SEC) appears to be ratcheting up its probe into possible insider dealing related to the Pequot Capital Management hedge fund.

The Wall Street investment bank and brokerage Morgan Stanley said Friday that the SEC had requested testimony from its chief executive, John Mack, a well-known Wall Street banker,...