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ECB To Launch Hedge Fund Analysis

Law360 (October 26, 2006, 12:00 AM EDT) -- The European Central Bank has become the latest organization to offer its two cents about hedge fund regulation. Acknowledging the risks of hedge fund investment, the ECB will launch an in-depth analysis of the $1 trillion industry.

Speaking before the European Parliament in Strausbourg, ECB President Jean-Claude Trichet noted the inherent risks of hedge funds, and agreed to look into the industry and perhaps propose increased oversight.

Trichet told the assembly that while hedge funds do improve the flow of capital and often offer new financial...
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