The Watchdogs' Next Target: Hedge Funds
Now that federal and state securities regulators have cracked down on Wall Street analysts for their conflicts of interest, the watchdogs are training their sights on a new target: hedge funds. State authorities, alarmed by the explosive growth of these private investment pools and by a string of fraud cases, are pressing the Securities & Exchange Commission to bring the lightly regulated hedge-fund industry to heel. They're admonishing the SEC to act fast -- or risk being upstaged. "We're not going to stand around and wait for something to happen," says S. Anthony Taggart, director of the Securities Division of Utah's Commerce Dept.
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