US for greater scrutiny of hedge funds
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler testifies before the Senate Banking, Housing and Urban Affairs Committee during an oversight hearing on Capitol Hill in Washington, U.S., September 15, 2022. REUTERS/Evelyn Hockstein
Gary Gensler, the chair of the US Securities and Exchange Commission (SEC), said hedge funds and other parts of the shadow banking system need to face greater scrutiny after last month’s upheaval in US government bonds, the Financial Times reported on Saturday.
Gensler told the newspaper that reducing the risks from speculative funds and nonbanking financial institutions was “more important than ever”. “We just had Treasury yields move more significantly than they had in 35 years in three days in mid-March,” the Financial Times quoted Gensler as saying, referring to the volatility in Treasury bonds last month following the rapid collapse of Silicon Valley Bank and the fall of Signature Bank.