In a public meeting, the Financial Stability Oversight Council
(FSOC) updated its two-year review of potential risks to the U.S.
financial system from hedge funds, mutual funds and other
funds' liquidity, leverage and redemptions. It declined to
designate any asset managers as "systematically
important," however the regulatory body did raise concerns
about a concentration of leverage in large hedge funds and created
a working group to study data on firms in a report on asset
management. The group will be composed of member agency staff and
will report by year-end on issues such as counterparty exposure,
margin investing, trading strategies and possible standards for
measuring leverage.
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