The Group of Thirty (G30), led by former Federal Reserve Chairman Paul A. Volcker, issued a report on Jan. 15 detailing how financial industries worldwide could be reformed to reduce systemic risk. In relevant part, the report recommends that large institutions be prohibited from sponsoring or managing commingled private pools of capital such as hedge funds; that financial regulators "should have authority to require periodic regulatory reports and public disclosures of appropriate information regarding the size, investment style, borrowing, and performance of the funds under management" of large private funds that rely on substantial leverage; and that jurisdiction over large private funds "should be based on the primary business location of the manager of such funds, regardless of the legal domicile of the funds themselves." Asked if the report's recommendations may foreshadow any Obama administration efforts to reform regulation of the financial services industry, Volcker said "the fact I chaired the steering group that produced this report speaks for itself."
Full Story: Group of Thirty Seeks Changes to Financial Industry Regulation, 41 Sec. Reg. & L. Rep. 108 (Jan. 26, 2009)
Full Recommendations are available here (PDF)