Mary Schapiro, who was confirmed as the new SEC Chairman on Jan. 15, indicated at her confirmation hearing that she would "absolutely support" mandatory hedge fund registration and stronger oversight and disclosure requirements. Similarly, US Treasury Secretary appointee Timothy Geithner stated on Friday, Jan. 23, in written responses to questions submitted by Sen. Carl Levin (D-Mich.), that he supports a registration regime for hedge funds. Geithner stated that hedge fund registration would be an important step towards regulating "systematically significant financial institutions, whose failure could destabilize our markets and severely disrupt credit flows." Schapiro also indicated that she will reevaluate short selling regulation, including the possible reintroduction of the uptick rule.
Full Story: Schapiro Pledges Vigilance as SEC Chief, Wall Street Journal (Jan. 16, 2009)
Full Story: Geithner: Strengthen Derivatives, Hedge Fund Rules, Reuters (Jan. 23, 2009)
Geithner's Responses are available here (PDF)