Rep. Baker revisits hedge funds with help from Frank

Rep. Richard Baker (R-La.) is poised to tackle the red-hot issue of hedge-fund regulation, collaborating with Rep. Barney Frank (D-Mass.) on a revamp of a 1999 bill that put the Federal Reserve in charge of monitoring the sprawling hedge industry.

Baker’s drive to revisit the debate over hedge-fund disclosure that he helped ignite seven years ago comes amid heightened congressional scrutiny of the complex hedging universe. Fearing a market convulsion harmful to investors, lawmakers are still weighing whether to take preemptive action to rein in hedge funds, which rely on creative and risky trades to reap profits under light regulation.