A bipartisan congressional panel identified unregulated institutions such as hedge funds and private equity funds as a source of systemic risk. In a 109-page report, the Congressional Oversight Panel called on Congress to apply the regulatory "principles" that guide the treatment of other money managers to currently unregulated funds, if not the same exact regulations. The panel also recommended applying the federal standard of fiduciary duties to fund managers, requiring transparency around derivatives contracts tied to publicly traded securities, and subjecting firms making credit or insurance commitments through derivatives to capital requirements.
Full Story: Congressional Panel Urges Changes to Financial Rules, MarketWatch (Jan. 29, 2009)
Report: Attached here (PDF)