US watchdogs mull hedge fund regulation

After hearing testimonies on developments in the hedge fund industry, the Financial Services Committee of the American House of Representatives has suggested that tighter regulation of the industry may be required.

Republican Barney Frank, chairman of the committee, commented: "I don't think anybody can be confident that all's entirely well here." He added that the increasing significance of the largely unregulated was "a matter of concern."

Frank also said that although there would be no "rush