4 SEC chiefs warn on hedge funds
Four former Securities and Exchange Commission chairmen said Wednesday that too little was known about the activities of hedge funds and leveraged buyout firms. The four warned of a possible crisis if regulators don’t rein in the fast-growing investment vehicles.
“I continue to be concerned about the influence of pooled vehicles in the marketplace,” William H. Donaldson, who stepped down as SEC chairman in 2005, said at a forum of former agency chairmen in Washington. “I see it as a ticking time bomb that is going to blow up at some point.”
Other SEC chiefs joining in the warning were David Ruder, Harvey Pitt and Arthur Levitt.
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