The President's Working Group (PWG) on Financial Markets vowed to increase its vigilance of hedge funds -- but its members demurred from taking action. SEC Chairman Christopher Cox and Connecticut Attorney General Richard Blumenthal took sides on the matter.
Cox explained on "Street Signs" that the PWG is an "umbrella group" comprising the SEC, the Treasury Department, the Federal Reserve, and the Commodities and Futures Trading Commission -- and as such a coalition, actually does not have the authority "to directly issue regulations." (Unlike the SEC, which Cox said has "pending regulations" aimed at hedge fund activity.) Instead, he said, the PWG urged the adoption of "guidelines" and a "set of principles" for the "private pools of capital," as he defined hedge funds, private equity and venture capital groups.