Description: An influential European parliamentarian is calling for borrowing caps on hedge funds in a report to lawmakers that could lead to a tough new regime for the secretive industry.

Source: Reuters.com

Date: 11/25/2009

Link: http://www.reuters.com/article/hedgeFundsNews/idUSLNE5AO00O20091125

Questions for discussion:

• Summarize the arguments given for regulating hedge fund managers?
• What might the consequences be for hedge funds and financing if this regulatory environment continues to develop? Explain your thinking.
• Do you support this approach? Explain your answer.