Wednesday, January 10, 2007

Regulators quiz banks on fund risks

Financial regulators in the United States and several European Union countries have begun a joint investigation into whether banks' prime brokerages are taking too many risks as they increase lending to hedge funds.
Concern that booming lending to hedge funds may have led to a relaxation in credit standards has prompted US and European regulators to start the first joint investigation into whether banks and brokers are managing such risks appropriately.

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